David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 91 (4):553 - 566 (2010)
In a regressive tax system, lower-income taxpayers pay larger percentages of their incomes in taxes compared to higher-income taxpayers. Although most policymakers and citizens view regressive taxation as generally unfair and unethical, the U.S. tax system taxes wage, salary, and self-employment income in a manner that deliberately subjects lower-income taxpayers to marginal tax rates that are greater than those imposed on higher-income taxpayers. As a result, some lower-income taxpayers pay a larger percentage of their income in taxes than higher-income taxpayers. In this essay, we argue that this regressiveness in the taxation of salaried income is unfair and unethical. We then evaluate President Obama’s social security plan, which would retain most of the current tax system’s regressive structure. Finally, we offer two simple alternative proposals that are non-regressive, and thus more fair and ethical approaches to the taxation of salaried income.
|Keywords||marginal tax rate progressive tax regressive tax social security tax tax policy|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Citations of this work BETA
Donald R. Nichols, Elizabeth Plummer & William F. Wempe (2011). Equitable Taxation and the Provision of Health Insurance Subsidies. Business and Society Review 116 (4):435-466.
Similar books and articles
Hakan Selin, The Rise in Female Employment and the Role of Tax Incentives - an Empirical Analysis of the Swedish Individual Tax Reform of 1971.
Norton Garfinkle (2005). Supply‐Side Vs. Demand‐Side Tax Cuts and U.S. Economic Growth, 1951–2004. Critical Review 17 (3-4):427-448.
Harriet A. Stranahan (2005). Does Lottery Advertising Exploit Disadvantaged and Vulnerable Markets? Business Ethics Quarterly 15 (1):23-35.
Francois Maniquet, Help the Low Skilled or Let the Hardworking Thrive? A Study of Fairness in Optimal Income Taxation.
Edward J. McCaffery (2006). The Uneasy Case for Capital Taxation. Social Philosophy and Policy 23 (2):166-184.
Arvind Ashta, The EU Savings Directive (ESD): Taxation of Savings Income in the Form of Interest Payments (2003/48/EC, June 2003).
James D. Gwartney & Robert A. Lawson (2006). The Impact of Tax Policy on Economic Growth, Income Distribution, and Allocation of Taxes. Social Philosophy and Policy 23 (2):28-52.
Added to index2009-06-01
Total downloads27 ( #62,055 of 1,096,879 )
Recent downloads (6 months)1 ( #273,368 of 1,096,879 )
How can I increase my downloads?