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How ethical behaviors can impact the re-distributive policy of income tax.
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Capture this; I am against redistribute policy. I believe that redistributive is unfair to certain groups of people and it is unfair to another group of people regardless of their wealth. Income tax should be flat or proportions, same percentage for all. progressive U.S. current tax system gives negative incentives and discourages hard work. The government could support or give aid to those considered to be “less advantage” and not through taking other taxpayers earning.
Sources to be not older than 2012.
How ethical behaviors can impact the re-distributive policy of income tax
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How ethical behaviors can impact the re-distributive policy of income tax
Introduction
Taxation has always been used as a means for the governing body to earn for the purposes of provision of service to their people. It is a concept that has been there since long ago. There are however different methods through which the taxation process is carried out, income tax, value added tax and sales tax among others. This is all meant to ensure the sustenance of the social contract between the citizenry and the governing bodies. In the exercising of their taxing mandate the United States has come up with various methods that are meant to guide the process of taxation.
These methods typically need to conform to the values the society regards as ethical in order to gain acceptance among them. In so doing, the use of the redistributive system of taxation has been applied in the income tax collection. This system bears into consideration the amount of income and taxes in accordance with the same such that those who earn more pay more and vice versa. In the implementation of the same, the principle of equality was core. The taxation system additionally gives incentives to others by exempting them from taxation due to their financial situations.
Ethical behaviors and taxation
The rationality associated with decision making has long been considered as being due to the conscious and unconscious elements in our thoughts. The commitment of one to fulfill their social obligations such as the payment of tax has been premised on the principle of fairness where they are rewarded satisfactorily for their efforts (Chan, Wong and Wong, 2013). The same can be seen in taxation, in that those who feel satisfied by the services being offered by the government readily pays their taxes and are even willing to work harder in order to meet their tax obligations.
In the discharge of their taxation obligations, the government has made several rules that are intended to foster the principle of equality and social inclusion of all. The redistributive policy was thus implemented. This policy is meant to tax more for those who earn more and subsequently less for those who owe less. It is also coupled with certain incentives that are meant to cushion both businesses and individuals who earn less but have more social obligations.
The same is also meant to increase the chances of individuals in business as their risks would have been lowered by the incentive (Pastor and Veronesi, 2016). It is also meant to be a social cushion where the money saved by the incentives can be used in the performance of other social obligations in relation to the safeguarding of the basic societal provisions. In all this, the government tries to ensure equality and inclusiveness by giving the less fortunate the incentive for them to be able to provide for their basic needs.
All in all, the payment of tax is an obligation of every citizen and the incentives offered are meant to help the society by reducing their financial burdens so that they can be able to cater for their basic needs and also take risks in business ventures due to their skill set. It is therefore the general perception that in the discharge of their duty to pay tax, the citizens will be guided by their moral authority to fulfill their social obligations.
Negative impact of redistributive policy in income taxation.
The promotion of redistributive taxation and the progressive system in the imposition of the same has however led to the unethical behavior in many. This is because of the unfairness it has to the hard working Americans who toil to earn a living only to be taxed and the same used in supporting and offering essential services to those who do not work but wait on the incentives. This process of taxation is termed unfair since one is made to pay more for working harder. The cost benefits are classified as one of the factors that affect the ethical behaviors in people (Trautmann, van de Kuilen and Zeckhauser, 2013).
In the consideration of the same, the use of the redistributive system can be said to have negative implications in the motivation of citizenry generally classified as of the lower class in not seeking sources of income since they will be cushioned from paying taxes and yet receive the same basic services the others are receiving. The value of hard work and the utilization of the different talents will be diminished since preference is given to those with less as they do not have to pay but receive the services anyway….
How ethical behaviors can impact the re-distributive policy of income tax
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