Tax Plan Essay - A Comparative Analysis of Tax Plans - English 120

This essay provides a comprehensive analysis of three different tax plans: proportional, progressive, and regressive. It examines the impact of each tax plan on different income groups and the overall economy, with a particular focus on the United States' progressive tax system. The essay discusses the arguments for and against each tax plan, highlighting the potential benefits and drawbacks of each approach. It also explores how different tax plans affect government spending and the distribution of wealth. Ultimately, the essay concludes that the progressive tax plan is the most successful for the economy as it balances the needs of both the wealthy and the lower-income individuals, especially during economic recessions. Desklib provides access to this and other solved assignments for students.

Selevya Kareem
November 18, 2018
Stacie Hankinson
English 120
Tax Plan Essay
People have different opinions about tax plans. There are three types of taxes: proportional,
progressive, and regressive. The proportional tax plan is where everyone pays the same amount
of taxes, progressive tax plan is when people pay their taxes based off of their income, and
regressive tax plan is where the lower income person pays more taxes than the high income
people. To the economy only one tax plan of these is successful. Progressive tax is the only
successful one to the economy. People may agree or disagree with the progressive tax plan, but it
is the one that makes more sense to the economy. The U.S. uses the progressive tax plan.
The progressive tax plan is where large percentage is taken from high income earners, but low
income earners give less percentage. The lowest-earning fifth of the population spent $24,470 in
2015. Of that, they spent 15 percent on food, 35 percent on shelter and utilities, but just 2 percent
on retirement savings. The highest-earning fifth spent $110,508. Of that, they spent 11 percent
on food, 33 percent on shelter and utilities, and 14 percent on retirement savings. People of the
U.S. pay different amounts of taxes because it depends on how much each individual’s income.
The percentage does not show the amount that people are paying. In 2011, those with an income
0f $30,000 to 50,000 only paid 4% in taxes and people with an income $1 Million or more paid
23%. The percentage decision is made after the deductions. This is still a progressive tax plan
system. When it comes to proportional taxes it works differently because everyone pays the same
amount of taxes which makes tax rates get to be settled at the same percentage for everyone. For
a regressive tax system it is the opposite of a progressive tax plan because people with low
income pay more taxes than the people with high income.
A progressive tax plan makes people argue that it is unfair and comparing how much some
people are getting taxed it shows that it is unfair to some people. The proportional and regressive
tax plans show that they put heavy load on the people with low income. The proportional tax tax
plan may be portrayed as fair because every taxpayer get to pay the same amount as everyone
else. People argue that this tax system encourages economic growth as individuals and
businesses seek for higher earnings without penalty of taxes. Proportional taxes are usually
compared to sales taxes because all consumers pay the same rate. Sales tax is now being used
with progressive tax plan in the United States economy. On the other hand, regressive taxes

include property taxes and excise taxes. The income cap makes people with higher income pay
lower taxes than the people with low incomes.
People who pay progressive tax get to pay higher amounts of taxes tend to think that that their
money are going to the lower class. In real life the government spends a small portion on welfare
payments. The federal spending is divided into mandatory spending, discretionary spending, and
interest on debt. Federal spending is for our basic needs. If the United States had a proportional
or regressive economy, people would not be living benefits and public goods being offered.
When it comes to payments, the lower class families get to share their income on living costs.
Making the lower class pay more is not the right way to the standard of living. Taxing the
wealthy people may decrease their ability of investing, adding to their retirement savings, or
buying luxury stuff.
When it comes to tax plan systems people argue about this topic because everyone thinks
differently. Between proportional, progressive, and regressive tax plans, I prefer the progressive
tax plan. Progressive tax plan system benefits everyone the poor and the rich. Progressive tax
plan is more fair. Some people think that proportional tax plan is fair, but it still makes most of
the heavy load on the lower class. The progressive tax plan system is the best because people get
different amounts of incomes. There is a distribution of money and helps people. People with
low income get help during recession times which makes progressive tax plan better than the rest
of the tax plan systems.
Works Cited
https://www.thebalance.com/progressive-tax-definition-examples-4155741
http://time.com/money/3949337/taxes-how-much-americans-pay/
https://www.nationalpriorities.org/budget-basics/federal-budget-101/spending/
https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/
https://www.investopedia.com/ask/answers/042415/what-are-differences-between-regressive-
proportional-and-progressive-taxes.asp