Advantage: Fairer (In Some Ways) The progressive tax system is fairer than a tax

Question

Advantage: Fairer (In Some Ways) The progressive tax system is fairer than a tax system in which everyone is required to pay taxes at the same rate because it requires those who are able to earn more to give more back to their government, while those who are not able to earn as much are not required to pay as much back. In this way, those who get the most out of a system are the ones who most support it.

QUESTION: In what ways do higher income earners "get more out of the system"?

Government uses tax funds for public safety, for recreational areas, for infrastructure maintenance and expansion, and other "public goods".

It also provides assistance for food, housing, child care, jobs, etc.

Which of these services are used more by high income earners and which are used more by low income earners?

Explanation / Answer

In the progressive tax more tax are paid by the more income groups people. Similarly less tax are paid by the low income group people. Now here question is how higher income earners are getting more out of a system as they are paying more as a tax to the govt. Various types of facilities more enjoyed by the higher income earners than the lower income earners . For example we can say the social security schemes the higher income earners are getting for facilties here. In medicare insurance they are getting more benefits. In social security scheme it has been seen that life expectancy of the higher income groups are more as a result they are getting more benefits out of this. Because as the ages increases the benefit they receive increase accordingly. They start their social benefit in more ages. In a study and report published ftom the Govt Accountability Office that the low wage earners collects 11 - 14 percentage less than average collects of facilities where higher income earners collect 16-18 percentage than the average. So the higher income people are getting more out of the system because most of the tax collection are expend through various social security scheme.

The higher income earners used various types publoc facilities. They use more facilities in infrastructural sector, child care facilties etc and also the social security scheme. The higher income earners get more facilities in infrastructure and some other public facilities.

On the other hand low income groups earners use the govt facilities in food ,housing , jobs sectors. They are getting more benefit in terms of their basic facilties. Because low income group more facilities in terms of their basic reqiirement.

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