Today in class we talked about income equality and taxes. Should lower incomes be taxed more or less than higher incomes? Should income be taxed more than inheritance?
Going to TCU makes this a very difficult conversation to have in class. Many students do come from families that are wealthy, so they will probably get an inheritance. And it upsets them that they might have to pay taxes on that money when their family already did.
Don't get me wrong, I totally see their point. They say that they have no incentive to take that money or for them to earn more to give their children if it will be taxed.
But nobody even brought up the other side, the side that I see clearly.
50% of Americans don't pay taxes. This is because they are unemployed or skip out because they don't make enough money. And if I was that poor, I wouldn't pay either. Because why should I make more when I'll have to pay taxes? I should just stay in the no tax bracket I'm in and take welfare money from the government.
They have no incentive to work harder because the government hands them money.
This argument really goes both ways. I'm not sure what the best solution is, but it's just some food for thought.