Taxation Essay Example | Topics and Well Written Essays - 250 words - 1

Taxation - Essay ExampleTherefore, progressive taxation mode that the rich profits more taxes compared to those earning minimal wages. On the other hand, regressive tax compels the poor to patch up a higher(prenominal) percentage of their income compared to the rich. Buffetts views are non in isolation because the American taxation system has been criticized as being regressive (Mikesell, 2014).It is possible that Buffett made his claims based on mistaken calculations. A close analysis of the basic federal taxation principles reveals that it is impossible for his receptionist to be paying(a) a higher percentage of tax. Warren Buffett has a higher total taxable income compared to his receptionist. Evidently, the tax he is supposed to pay represents only a small percentage of his income. On the other hand, his receptionist and other workers who have a lour total taxable income face the compulsion of paying a higher fraction of their income as tax. In addition, it is possible that Buffett took into account the employer-paid payroll taxes that his receptionist does not pay. The inclusion of such taxes made his receptionist seem to be paying a higher percentage. Therefore, the federal taxation system is not regressive. Unfortunately, Warren Buffetts claims do not have any substantial evidence (p.