The Tax Divide: Taxes for the Rich & Taxes for the Poor

Posted on August 20, 2022

The Tax Divide: Taxes for the Rich & Taxes for the Poor

The possibility of a tax increase has created a great divide between high and low class Americans. The rich are expected to pay higher taxes because of their income. The middle and lower-income groups, on the other hand, cannot pay higher taxes because they cannot afford to do so.

Economists state that increasing taxes on the rich does not only affect them; it also affects other income groups because they are tied together by employment. If the spending power of the rich is affected by increased taxes, it also affects the market, which ripples into the overall economy.

The tax rate difference has caused people to not consider the symbiotic relationship between the employers and employees, and between the producers and consumers. Increased taxes for the rich may bring in more revenue, but it may also adversely affect the employment market, as the rich will decrease spending, whether that be consumer spending or investments.

Before tax reform is achieved, the government must consider the cause and effect of an increase or decrease in taxes, and an introduction or withdrawal of tax benefits, as it will trigger a reaction.

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