Public Finance

Public Finance
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A minimum federal tax rate for all the taxpayers would be against what recent tax reforms have sought. A majority of Americans already suffer under the current tax regime where there is no equity in the amount of taxes that the middle class and the high-income earners contribute to the economy (Hill, 2016). Persons who live by the minimum approved federal wages if subjected to a minimum tax rate, they would leave a huge chunk of their earning to the government. However, the high-income earners and investors should get subjected to the minimum federal tax (Hill, 2016).
Tax should be calculated on an escalating level depending on how much income one gets. It is on record that wealth Americans save more than 30% of their income. A new tax regime should target the rich who pay taxes equal to those submitted by average income earners (Steverman, 2017). Low-income earners should not get taxed more than 7% of their income, while the middle class can get taxed anywhere between 15%-20%, and the high-income earners can give 50% of their earnings to the Internal Revenue Service. The high-income earners are persons making an income of more than one million dollars per year (Steverman, 2017).
Minimum federal taxes are a reasonable proposal for a system that aims at creating an equity conscious tax system. Low and middle-income earners should get subjected to a maximum tax rate while the rich should work by the minimum tax rate (H…