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How does the current tax system overburdens the middle-class citizens? essay

To what extent does the present tax system impose excessive obligations on those belonging to the middle-class demographic? Title: The Impact of the Current Tax System on Middle-Class Individuals Introduction: The tax system assumes a pivotal position in the provision of financial resources for government operations, the facilitation of public services, and the advancement of socioeconomic equity. Nevertheless, it is frequently observed that the existing tax structure tends to impose an inequitable weight on individuals belonging to the middle-class demographic. The objective of this essay is to examine the manner in which the existing tax system places excessive financial pressure on the middle class, with a particular emphasis on significant aspects such tax rates, deductions, and loopholes. The prevailing tax system commonly utilizes a progressive tax framework, wherein tax rates escalate in tandem with rising amounts of income. Although the primary aim of this method is to foster equity, it frequently leads to an onerous weight on the middle class. As individuals belonging to the middle-class demographic endeavor to ascend the socioeconomic hierarchy, they encounter elevated tax rates which subsequently diminish their disposable income, so impeding their ability to progress upward. The availability of deductions and credits is typically restricted for middle-class taxpayers, so limiting their capacity to utilize these tax-saving measures and decrease their overall tax liability. Although the tax code offers a range of deductions and credits, a significant number of them are subject to income limitations or phase-outs. This constraint hinders the ability of middle-class persons to fully avail themselves of these tax incentives, hence compounding their tax liability. Payroll taxes, including taxes for Social Security and Medicare, are a substantial portion of the tax liability borne by individuals in the middle-income bracket. In contrast to the progressive nature of income taxes, payroll taxes exhibit regressive characteristics by imposing a uniform rate on earned income within a specified threshold. The regressive aspect of this phenomenon exhibits a disproportionate impact on individuals belonging to the middle class, mostly due to their greater reliance on earned income as opposed to investment income. The existing tax system frequently exhibits a lack of equitable distribution of the tax burden across various socioeconomic levels. Middle-class individuals, who derive a considerable amount of their earnings from salaries and wages, shoulder a notable proportion of the tax burden in contrast to higher-income individuals who may have access to diverse tax shelters and loopholes. The aforementioned disparity exacerbates the disparity in wealth and impedes upward social and economic mobility. The tax system's intricacy imposes an additional financial strain on individuals belonging to the middle socioeconomic level. Middle-income taxpayers frequently encounter challenges in understanding and complying with complex tax legislation, often necessitating the engagement of expert aid, resulting in additional financial burdens. In addition, the allocation of time and effort towards tax compliance detracts from the availability of important resources that could otherwise be utilized for personal financial advancement and investment. In conclusion, it may be argued that the existing tax system places an inequitable weight on individuals within the middle-income bracket, impeding their financial advancement and intensifying the disparity in income distribution. In order to effectively tackle this matter, it is imperative for policymakers to deliberate over and enact measures that facilitate the establishment of a more equitable tax framework. Potential improvements might encompass streamlining the tax law, broadening the availability of deductions and credits for those within the middle-income bracket, and establishing a fairer distribution of the tax burden across various income strata. By implementing measures to reduce the tax burden on individuals within the middle-income bracket, it is possible to cultivate an environment that promotes enhanced economic opportunities, increased social mobility, and overall prosperity for the broader population.


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