Double and Triple Taxation Must be Eliminated :: Expository Exemplification Essays

Double and Triple Taxation Must be EliminatedPresident George Bush states that its unfair to task money twice. This statement is actually an example of normative economics and only describes an opinion. It cannot be proven because the term unfair is relative to different people however, not many people would dare to disagree. Especially if the double taxation was not aimed only at the large corporations or the richest 10% of the nation however at either hardworking American who brings home a paycheck. Even worse, many of these Americans do not even realize the double tax, and sometimes even threefold tax, that is imposed on them. Currently, large corporations are required to be taxed a certain percentage of all of their profits. This includes the money from which dividends are derived. When stock holders obtain the dividends from these corporations, the organization counts this as individual income and is taxed once again. Six percent of the population would benefit from abolis hment of this double tax. However, the largest part of the income that is taxed twice is the income from the workers paycheck. Opposed to the 6 percent of dividend holders, this affects every working American. The income is first taxed as a whole and then Social Security and Medicare tax is also deducted. The money that was for Medicare and Social Security is never seen but is counted as if the individual had an opportunity to spend it. What is worse is much of the Social Security money is received from retirees who are again taxed on the income, creating a ternion tax. For Social Security recipients, there is a fixed amount of income allowed to go untaxed but is taxed once exceeded. However, these group amounts do not change with ostentation which creates more and more people who are unfairly taxed. Also, this triple tax is paid all by the same person whereas the dividend tax is shared by both corporations and stockholders. This double tax is imposed on far more people who make much less money than the dividend holders. The Social Security tax on a workers paycheck can only be implemented on a certain amount of income, creating a maximum base amount. This base amount does rise with inflation. Therefore, as income increases, the Social Security tax actually decreases. Those who make less money pay a larger percentage of their income to the political relation through the Social Security tax than the wealthy class does.