Is progressive taxation the solution to economic inequality?
Economic inequality is proving to be a major problem. Is progressive taxation really the answer? Or are there other solutions?
Yes
Side Score: 2
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No
Side Score: 3
Winning Side! |
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2
points
If done correctly, progressive taxation can be part of the solution. The wealthy do not create wealth, the market does. Taking away more money from those that needs it less and less from those who needs it more raises general demand in a market, because more people have a greater discretionary income then otherwise. This demand creates jobs. Side: yes
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1
point
In some cases, progressive taxation punishes even relatively small pay rises. If the rate for £25,000-£30,000 was 35%, and the rate for £30,000-£35,000 was 40%, then a man earning £30,000 would have a net income of £19,500. However, if he was given a raise of £2000, bringing his salary to £32,000, then his net income would be £19,200, or £300 less than if he had nor received a raise at all! On a larger scale, I agree with esteemed Cicero. Side: No
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