SOC 125 Study Guide - Final Guide: Tax Rate, Progressive Tax, Equal Pay For Equal Work
Document Summary
One can consider taxation as the public taking resources from the private. This is income as a personal, private property which is being taken away by the government for public purposes. This is a reason why no one wants tax increases. Another way one can consider taxation is as the division of the economic pie between public and private shares. This is dividing up the goods and services produced in a society. Each individual"s contribution to the pie is dependent on their society (demographic, geographic, and psychographic). Taxation allocates how much of the total social income to give people for private allocations and how much to use for public purposes. A progressive income tax is the marginal tax rate that people pay which increases with income. The purpose of this tax is so every person will experience the same amount of burden, or monetary loss, in society from paying taxes.
