Tax Paper

Tax Paper


The federal income tax system takes an increasing percentage of money from

people who produce more. Since it was first introduced in 1913, the income tax code has

been revised numerous times because of the efficiency and equity problems it has caused

(Rosen 2002). It's wrong that the very ideals America holds high - hard work,

responsibility, risk-taking, and investing for the future - are penalized. To better illustrate

why our current system is flawed, take for instance to families A and B respectively.

Family A makes an extra $2,000 as a result of working more hours; since it is in the 15

percent tax bracket, it pays $300 taxes and keeps $1,700. Family B also makes an extra

$2,000 as a result of hard work; but since it is in the 30 percent tax bracket, it pays $600

in taxes and only gets to keep $1,400. Although both families put in extra hours to make

the extra $2,000, family A gets to keep more of its hard-earned extra mo...