At the present time, the IRS Tax Code is progressive, that is those who earn the most pay the most in taxes. The poor end up paying no income taxes at all because, after allowable deductions, they have no taxable income. This may seem unfair, however the income tax is not the only tax burden and the same poor people who pay no income tax pay a disproportionately higher amount in other taxes.
A tax which takes a higher percentage of income from those who make less money is called a regressive tax. These regressive taxes include taxes on cigarettes, alcoholic beverages, telephone services, electricity, gasoline and other goods and services. Sales taxes on necessities also hammer the poor and middle class harder than those of higher incomes.
I don't know if anyone has ever done a study to determine how much the typical middle class worker pays in total taxes (including all imbedded taxes) and fees. I am inclined to believe that he pays a substantial percentage of his earnings, a lot more than 10-20 per cent. The progressive tax on income benefits the lower wage earner at the expense of the wealthy; however, the hundreds of regressive taxes and fees are a much heaver burden to those who can least afford them.
The only way to get everyone to pay the same rate in taxes is to do away with all regressive taxes and tax only income, but that will never happen. It will never happen because governments at all levels have an insatiable appetite for funds and they never met a tax they didn't like. In some areas, the tax on a gallon of gasoline is close to 70 cents. Everyone knows that the poor and middle class are the ones most affected by this unfair tax, but no one is doing any thing to change things. In fact, recently there was talk in Washington about increasing the tax.
I would humbly suggest that the progressive tax structure on incomes merely levels the playing field somewhat for those lower wage earners who pay a much higher rate – as a percentage of their income - for the multitude of regressive taxes and fees on goods and services.
Some posters have suggested that a tax of10% on all income would be bearable, but I disagree. There are many people who are frugal and yet still live from paycheck to paycheck. For these people a tax of just 10% on their total income would be devastating.
I find it strange that when it comes to taxing income, the government extolls the virtue of progressive taxation. However, the poor man is literally taxed to death by the many various regressive taxes imposed on him at all levels of government. And no one seems to care.