Rethinking how taxes are structured and collected is essential for creating a fairer society. Progressive taxation, where the wealthy pay a higher percentage of their income in taxes than those with lower incomes, is a way to address the current wealth inequality. Eliminating tax breaks and loopholes that benefit the wealthy is another necessary step. These loopholes often allow the rich to avoid paying their fair share of taxes while middle- and low-income earners can bear the burden.
One way to make the tax system fairer is to increase the marginal tax rate for the wealthiest earners. This means that the percentage of their income paid in taxes would increase as their income increases. Another way is to tax capital gains at the same rate as income rather than at a lower rate, as is currently the case. This would ensure that those earning their income through investments pay their fair share.
Additionally, eliminating tax breaks and loopholes that primarily benefit the wealthy is necessary. These include tax breaks for corporate jets, yachts, and other luxury items. Eliminating these tax breaks would allow for the redirection of funds towards more socially beneficial projects, such as education, healthcare, and infrastructure.
Another way to create a more equitable tax system is to shift the tax burden away from essentials like food, housing, and healthcare. Instead, taxes could be levied on luxury items and non-essential goods and services. This would help ensure that those struggling to make ends meet are not burdened with additional taxes while those who can afford luxury items pay their fair share.
Rethinking how taxes are structured and collected is necessary for creating a fairer society. Progressive taxation, eliminating tax breaks and loopholes that benefit the wealthy, and shifting the tax burden away from essentials are all steps that can be taken toward a more equitable system. It is time to prioritize the needs of the many over the interests of the wealthy elite, and a fairer tax system is one way to do so.