The rich people should pay more taxes in the US

Therich people should pay more taxes in the US

By the end of the financial yearof 2016, the US government will have a public debt amounting to $22.4trillion. Using the taxes collected annually, it is theresponsibility of the government to ensure public debt is paid tothose who loaned them. The major source of government revenue is fromtaxes levied on income of individuals. To pay easily off publicdebts, the US government should tax the rich more to contain incomedistribution inequality.

It is important for thegovernment to tax those earning more money in the country compared tothose earning less. Some economists believe that rich peoplecontribute greatly to job creation in the US, but it is not alwaysthat the rich people will invest their money to create jobs locally.By depositing their wealth in foreign countries, the government isdenied the opportunity of collecting more taxes to facilitate localjob creation. For example, making over $1 million in one financialyear, progressive tax levied on them need to be high to retain moreof their income in the country for more public spending. Finally, thegovernment will be able to invest more in other areas creating jobopportunities, which will attract the middle class income earners(Thoma, 2015). Consequently, the government will now have morecontributors to its revenue collection due to more taxableindividuals.

In conclusion, taxing the richermore will not reduce the rate of economic development in the US asperceived by other economists. Importantly, this will increase moreinvestments in other economic sectors by the government, which willeventually contribute to easy payment of public debts, as there willbe more people to tax unlike if the government will let the rich toinvest willingly their money.

Works Cited

Mark Thoma. &quotTaxing theWealthy Promotes Economic Growth.&quot TheFiscal Times. N.p.,2015. Web. 02 Oct. 2016.