Henry Ehlen

May 28th 2013

Modern Federalist Papers

An Informative Newsletter to all U.S. Citizens

An Anti-Progressive Tax Argument

Argument & Claims
Claims against the American progressive tax system and how it is an inefficient system as well as a counterclaim.

Solution to the Problem

A strong solution to the unfairness of the progressive tax: A flat tax.

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Henry Ehlen
May 28th 2013

Is it really fair?

Many supporters of the progressive tax stand behind it because of its principle that the wealthy population in America has more income to give and they don't need it; the Oregon Center for Public Policy addresses their opinions on the progressive tax through many essays. This principle can be disproven through the simple thought process that the wealthy are who invest in the economy, philanthropies, and employment opportunities. With less available capital willing to be invested - which is a factor of production that is required to keep a capitalistic economy functioning, meaning every citizen in a capitalistic society benefits from it - growth of the economy is decreased. A person in the lower tax brackets does not have the ability to start a business without the proper amount of money, even though they may have the motivation to try to; in other words trickle-up prosperity does not work.
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Henry Ehlen

May 28th 2013

Example of Prospering Lowered Taxes in the 1920s

A Policy of Lower Taxes

Failure of the Progressive Tax:

There can be no moral of the tax. -Ronald Reagan

Henry Ehlen

May 28th 2013

An Alternative to the Progressive Tax System

A Flat Tax Rate for Every Citizen

People need to take a vested interest in dangers produced by the progressive system. Most important of these dangers would be the income inequality gap that the progressive tax system repeatedly increases. This does not only affect the impoverished, but it touches the lives of every living American. Additionally, rising government debt only hurts the reputation of the United States on the world stage

This is shown through Baltic countries that have boasted up to a ten-percent yearly
increase in GDP (Gross Domestic Product a number economists utilize to determine 4 the strength of an economy) over recent years.

The optimal flat tax rate shown through other countries is somewhere between 15-20%

Works Cited
Garst, Brian. "Income Inequality: A Progressive Tax System Isn't the Best Solution." PolicyMic. PolicyMic, Feb. 2013. Web. 15 May 2013. Matthews, Dylan. "Americas Taxes Are the Most Progressive in the World. Its Government Is among the Least." Wonkblog. The Washington Post, 5 Apr. 2013. Web. 15 May 2013. Mitchell, Daniel J. "Cato At Liberty." Cato Institute. Cato Institute, 1 Apr. 2013. Web. 15 May 2013. "Oregon Measure 66-67 Failure Now National News." The Oregon Catalyst. The Wall Street Journal Editorial, 21 Dec. 2010. Web. 15 May 2013. Rugy, Veronique De. "1920s Income Tax Cuts Sparked Economic Growth and Raised Federal Revenues." Cato Institute. Cato Institute, 4 Mar. 2003. Web. 07 June 2013.