Taxes greatly influence U.S. economy. Because of this influence, it is good to know the effects they have in the economy and on a personal level. Complete the following to gain a better idea of the various types of taxes, their influences, and how they influence the economy.
Why is the federal income tax progressive, while sales and excise taxes are regressive?
Why do you think they were designed this way?
If you could, would you change anything with these taxes? Why or why not? Explain.
Can anything be improved one way or another?
Do you think the argument against redistributing income through income taxes based on reducing economic efficiency is a strong one? Explain.
Provide an example where a business did not expand because the possible taxes on the profits due to that expansion. Has this happened to your work? What are your thoughts on this?