search query: @indexterm TAX POLICY / total: 92
reference: 2 / 92
| Author: | Nichols, D.R. Wempe, W.F. |
| Title: | Regressive tax rates and the unethical taxation of salaried income |
| Journal: | Journal of Business Ethics
2010 : FEB II, VOL. 91:4, p. 553-566 |
| Index terms: | taxation ethics tax policy USA income tax |
| Freeterms: | marginal tax rate progressive tax regressive tax social security tax |
| Language: | eng |
| Abstract: | In a regressive tax system, taxpayers (hereafter as: txprs.) with lower incomes (herein as: l-i.) pay larger percentages of their incomes in taxes compared to higher-income (as: h-i.) txprs. Despite most policymakers and citizens viewing regressive taxation as generally unfair and unethical, the United States tax system taxes wage, salary, and self-employment income in a way deliberately setting l-i. txprs. under marginal tax rates greater than those imposed on h-i. txprs. As a result, some l-i. txprs. pay a larger percentage of their income in taxes than h-i. txprs. It is argued herein that this regressiveness in the salaried income taxation is unfair and unethical. Evaluated is President Obama's social security plan, which would preserve most of the regressive structure of the current U.S. tax system. To the end, provided are two simple alternative proposals that are non-regressive, and thus more fair and ethical approaches to the taxation of salaried income. |
SCIMA