Why do high income earners pay more taxes?
Answers
As they have to pay income tax so that the govt. could extract more out of the more earning people and less out of the less earning people.
Explanation:
1. High-income earners have to pay more of direct taxes- income tax and corporation taxes.
2. Direct taxes are that types of taxes which can’t be transferred to the others and has to be paid by the individual directly.
3. It can be an income tax or corporation tax. Corporation tax is the tax incurred on profits made by a business organisation excluding its expenses.
4. This increases as the rate of income increases. Higher income earners would be necessary to pay more taxes.
5. Same is the case of income tax which is charged against the income of a person.
6. People with higher income would be required to pay more taxes.
7. Since they are incurring more income, they have the capability to pay extra taxes. Thus the rich are taxed more and the poor taxed less.
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