why do you think government should raise taxes on rich
Answers
When economic times are tough, the government needs to look at ways of bringing in more money. Increasing taxes on the wealthy makes sense, as they are the ones who are most able to afford tax increases.
A progressive tax system can prevent wealth discrepancies from getting too large. When the gap between rich and poor gets beyond a certain point, there is an increased risk of social instability and strife, such as crime and political turmoil. Big differences in wealth are also seen by many economists as one of the factors that led to the Wall Street Crash in 1929.
Taxing the rich can also be justified on moral grounds, if it is used as a form of wealth redistribution, with the tax money raised being used to aid the poorest sections of the population.
Countries such as Australia, Sweden and Canada all do relatively well in terms of growth, despite them having high taxes.
Since the 1970s, the income of the wealthiest members of society has increased dramatically, while the income levels for the rest of society have barely moved in real terms, which means that adjustments need to be made.
Money is needed to pay for defense, health, education, social security, etc and it has to come from somewhere.