Politicians such as Elizabeth Warren and Alexandria Ocasio-Cortez have proposed the idea of raising taxes on the wealthy, and this has raised the long-standing question: is this really a good idea? Both sides have reasonable arguments, and taxing or not taxing has its advantages and disadvantages. Supporters say the extra money that comes from taxing the wealthy could help fund many important projects, while opposers argue that taxing the rich is like punishing success.
Supporters of this idea say the money can be used to finance new spending on social programs and a Green New Deal, but also redistribute some of the wealth that the richest families are essentially just sitting on. Taxing this demographic can also pay off the national debt, which according to the US Debt Clock, is approximately $30 trillion at the time of this writing. Prices for necessities such as health care, day care, education and housing are rising faster than incomes. The government can provide basic housing, nourishment, health care, and education to the rest of its citizens, but the money must come from somewhere. The wealthy not paying their fair share would be a moral failure. The economy would benefit directly from a more equal distribution of income because middle and low-income families spend a greater portion of their incomes than the wealthy do, so more money would go through the economy. The economy would also benefit if everyone could take advantage of the opportunities that are hoarded by the rich. Hence, the economy would grow.
According to Forbes, the top 1 percent in the US holds 15 times more wealth than the bottom 50 percent combined. This should not be the case. Income inequality is not a good thing and taxing the rich could solve that. Plus, a new Reuters/Ipsos poll found that nearly two-thirds of respondents said they think the very rich should pay more in taxes. Among the 4,441 respondents to the poll, 64 percent strongly or somewhat agreed that “the very rich should contribute an extra share of their total wealth each year to support public programs.” Results were similar across gender, race and household income. This proves that raising taxes for the wealthy would have public support, and that’s important. Furthermore, billionaires such as Bill Gates and Mark Cuban have said that they would be willing to pay more in taxes, gaining support from those who are rich. “Rich people have a right to blow their money on Lamborghinis and world-wide cruises or whatever,” said Esin Zimmerman, 53, a lifelong Republican from Madison, Minnesota, who wants higher taxes for the wealthy. “But that money could be used in other ways that help people.”
Meanwhile, others argue that taxing the rich isn’t a good idea, but a very bad one. Michael Strain writes for Bloomberg Opinion that “soak-the-rich” policies can be unethical. “Progressive taxation is equitable if intended to raise government revenue. But it’s wrong to use it as a punitive weapon,” he writes. “The tax code shouldn’t be weaponized for the purpose of penalizing any minority. Not even the rich.” Others are saying that raising taxes on the rich is like punishing success. Billionaires should not be taxed more just because they are successful. They earned their money, and it shouldn’t be taken away from them. Many also say raising taxes on the rich is like promoting communism. With income inequality reduced, that’s basically a society where the people earn roughly the same amount (communism).
Opposers also point out taxing the rich wouldn’t directly contribute to income equality. If inequality is a cause of both economic insecurity and lack of access to essentials such as housing and health care, then reducing it is key, but if necessities can be provided even while inequality is still here, then maybe we should focus on how to meet those needs rather than on reducing the gaps. Wealthy individuals have tons of ways around taxes. Loopholes, legal or illegal, are used, so raising taxes wouldn’t reduce income inequality.
In conclusion, there are many arguments that could be made to support or oppose heavier taxes on the rich. And although the American public mostly supports the wealthy paying more, politicians are more evenly divided. Generally, democrats support higher taxes for the rich, while republicans oppose this idea. Although the US will probably not come into enough of an agreement to act on these proposals in the near future, it’s still worth it to look at each side’s thought process on the topic.
Supporters of this idea say the money can be used to finance new spending on social programs and a Green New Deal, but also redistribute some of the wealth that the richest families are essentially just sitting on. Taxing this demographic can also pay off the national debt, which according to the US Debt Clock, is approximately $30 trillion at the time of this writing. Prices for necessities such as health care, day care, education and housing are rising faster than incomes. The government can provide basic housing, nourishment, health care, and education to the rest of its citizens, but the money must come from somewhere. The wealthy not paying their fair share would be a moral failure. The economy would benefit directly from a more equal distribution of income because middle and low-income families spend a greater portion of their incomes than the wealthy do, so more money would go through the economy. The economy would also benefit if everyone could take advantage of the opportunities that are hoarded by the rich. Hence, the economy would grow.
According to Forbes, the top 1 percent in the US holds 15 times more wealth than the bottom 50 percent combined. This should not be the case. Income inequality is not a good thing and taxing the rich could solve that. Plus, a new Reuters/Ipsos poll found that nearly two-thirds of respondents said they think the very rich should pay more in taxes. Among the 4,441 respondents to the poll, 64 percent strongly or somewhat agreed that “the very rich should contribute an extra share of their total wealth each year to support public programs.” Results were similar across gender, race and household income. This proves that raising taxes for the wealthy would have public support, and that’s important. Furthermore, billionaires such as Bill Gates and Mark Cuban have said that they would be willing to pay more in taxes, gaining support from those who are rich. “Rich people have a right to blow their money on Lamborghinis and world-wide cruises or whatever,” said Esin Zimmerman, 53, a lifelong Republican from Madison, Minnesota, who wants higher taxes for the wealthy. “But that money could be used in other ways that help people.”
Meanwhile, others argue that taxing the rich isn’t a good idea, but a very bad one. Michael Strain writes for Bloomberg Opinion that “soak-the-rich” policies can be unethical. “Progressive taxation is equitable if intended to raise government revenue. But it’s wrong to use it as a punitive weapon,” he writes. “The tax code shouldn’t be weaponized for the purpose of penalizing any minority. Not even the rich.” Others are saying that raising taxes on the rich is like punishing success. Billionaires should not be taxed more just because they are successful. They earned their money, and it shouldn’t be taken away from them. Many also say raising taxes on the rich is like promoting communism. With income inequality reduced, that’s basically a society where the people earn roughly the same amount (communism).
Opposers also point out taxing the rich wouldn’t directly contribute to income equality. If inequality is a cause of both economic insecurity and lack of access to essentials such as housing and health care, then reducing it is key, but if necessities can be provided even while inequality is still here, then maybe we should focus on how to meet those needs rather than on reducing the gaps. Wealthy individuals have tons of ways around taxes. Loopholes, legal or illegal, are used, so raising taxes wouldn’t reduce income inequality.
In conclusion, there are many arguments that could be made to support or oppose heavier taxes on the rich. And although the American public mostly supports the wealthy paying more, politicians are more evenly divided. Generally, democrats support higher taxes for the rich, while republicans oppose this idea. Although the US will probably not come into enough of an agreement to act on these proposals in the near future, it’s still worth it to look at each side’s thought process on the topic.
