Should the government increase tax rates on everyone as a way to equalize income and wealth?

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justaguide | College Teacher | (Level 2) Distinguished Educator

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Increasing tax rates on everyone is not a way that can be used to equalize income and wealth. Though at the same rate of income tax, a person earning a higher amount does pay a higher amount as tax than a person who earns less, the percentage of the income earned that is paid as taxes is the same for both.

One way of trying to bring some equality in income and wealth is by the use of a progressively increasing rate of income tax. As an illustration, 10% of the income earned has to be paid as taxes till $50000, the rate increases to 15% for the amount earned between $50000 and $100000 and there is a gradual increase in the income tax rate for higher amounts.

If taxes are to be used to decrease the income earned by the rich, the rate of income tax for those that earn more should be increased while the income tax rates for those that earn less kept lower.

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