Here is a brief outline of the benefits and burdens that are created under the federal income tax principles:
Benefits:
- Income tax revenue pays for our nations necessities such as roads, parks, and schools.
- Everyone is taxed based on his or her income.
- Income tax provides law enforcement, judges, and politicians their salaries so that we may have peace within our borders.
- Income tax provides salaries to military and military advancement so we may have the protection of foreign foes.
Burdens:
- The Uppermost and Lowermost Classes do not pay income tax. (The upper because they pass their taxes onto the middle class and the lowest because they are exempt.)
- The system is complicated and hard to follow and easy to mess up which can cause fees, penalties and trouble with the IRS
- The government manages the money and does not have a great track record of doing so (i.e. social security and national debt)
- You are penalized for making more money. (In some cases you are better off if you do not work the last month out of the year.
The top income tax rate reached 94% during the World War II and remained at 91% until 1964.