Question

Should the United States federal government reduce the progressive income tax rates in favor of an introduction of a regressive national sales tax? Support your response with examples.

Answer 1

Yes the United States federal government should reduce the progressive income tax rates in favor of an introduction of a regressive national sales tax. Hence, since U.S progressive income tax means income redistribution that most taxes are used to fund social welfare programs however only a small portion of government spending is devoted to welfare payments. Example of this progressive taxes reduction is the sales tax. Moreover, If the two individuals buy the same amount of goods or services, the sales tax constitute a higher percentage of the lower-earning individual’s wages and a lower percentage of the higher-earning individual’s wages.