ShouldTexas Adopt a Personal Income Tax?
Issuespertaining to taxation have always been controversial in thecontemporary modern society. This is particularly considering thedouble-edged nature of taxation where the income derived fromtaxation is used in the provision of essential services to thepeople, yet the entire concept is considerably painful to taxpayers.On the same note, it is often the case that there is immensedisagreement regarding the form and rate of taxation that would beappropriate to the populace and sufficient for the country or anystate. Nevertheless, one of the most crucial and fundamental taxes inthe contemporary society remains to be the personal income tax, whichunderlines the direct tax that is levied on the income of anindividual. Governments impose income tax on the financial incomethat is derived by all entities that are located within theirjurisdiction. However, questions have been asked regarding theappropriateness of personal income tax. While there may be varyingopinions, levying personal income tax is appropriate both forindividuals and the government, in which case the Texas states shouldimpose it on its citizenry.
First,personal income tax enables the government to have a stable andconsistent stream of income for the government. As much as thecountry may be having 10 percent unemployment, about 90% of theelectorate is in gainful employment, in which case they are earningmoney. This means that the government has the capacity to maintain astable and consistent income stream even in times of depression. Ofparticular note is the fact that the government has specialobligations for the provision of certain services to the electorate(May 13). This means that even in times of depression, the provisionof essential services to the electorate would not be disrupted.
Inaddition, personal income tax would allow the state to have aprogressive taxation system n the amount that individuals make. Thismean that individuals on the lower income brackets would be taxed atconsiderably lower percentage rates compared to the high incomeearners, which makes for a perfect strategy for distributing wealthin the economy. This strategy would be appropriate for the stateconsidering that a large proportion of the populace is within the lowincome bracket. Levying the personal income tax ensures that the taxburden is borne by all people in the measure or rate at which theirearnings allow. Research has indicated that the failure to levy apersonal income tax would mean that regressive taxes are applied in auniform manner so as to offset the income tax revenue lost.Unfortunately, the working-class and poor residents in the statewould take up an onerous proportion of the tax burden.
Similarly,the personal income tax offers simplicity with regard to the mannerin which it is applied. A large proportion of people find matterspertaining to taxation a bit too complex to the extent that theysimply choose not to file their returns (Salanié54). However, this complexity is perfectly eliminated by theapplication of personal income tax as the calculation of the same isperfectly simple. Indeed, a large proportion of tax payers have theirtaxes taken straight out of their paychecks, in which case they wouldbe saved the burden of calculating the amount that they should remitto the government. Scholars have noted that this makes for aconsiderably reliable technique for collecting taxes (Nightingale56).
However,some people have argued that the imposition of the personal incometax would essentially amount to taxing success. This is particularlyconsidering the statistics that have indicated that in 2007, about 50percent of the entire income tax revenue was remitted by thewealthiest 5 percent of the people in the country. As much as thesepeople have the financial resources, it, with no doubt feelsinappropriate that they would pay such an enormous amount of taxes inproportion to the other people in the society (AultandBrian67). While this may be the case, it is worth noting that that incomehas been derived from the utilization of the resources that areavailable in the states and the country at large. In essence, it isonly fair that they pay the government for the utilization of theresources that it has provided. In this case, the imposition ofincome tax is appropriate (Rawal44).
Inconclusion, the application of income tax remains a controversialtopic in the contemporary society. This may be attributed to thevaried ideas pertaining to equality and fairness. While there may bevarying opinions, the application of income tax is appropriate and anecessity give the ease that it imbues in the tax system, as well asthe element of fairness that it brings to the economy. It is onlyfair that individuals who spend the highest amount of resources inthe economy also be required to remit the highest amount of income interms of taxes for the government. This is, essentially, what thepersonal income tax affords to its people.
Ault,Hugh J, and Brian J. Arnold. ComparativeIncome Taxation: A Structural Analysis.S.l: Kluwer Law International, 2010. Print.
May,Larry. Liberty,Equality, and Plurality.Lawrence, Kan: Kansas Univ. Press, 1997. Print.
Nightingale,Kath. Taxation:Theory and Practice.Harlow, England: Financial Times Prentice Hall, 2004. Print.
Rawal,Radhakishan. Taxationof Permanent Establishments: An International Perspective.London: Spiramus, 2006. Print.
Salanié,Bernard. TheEconomics of Taxation.Cambridge, Mass: MIT Press, 2003. Print.