Rick Kelo- What is the Optimal Progressive Tax?
As autumn draws closer and closer peopleâ€™s minds are distracted by everything new going on in their lives. The kids are back in school, learning new things and enjoying various activities. They may be showing off their new backpacks or modeling their new school clothes. Maybe their dad got a promotion, too. His boss is appreciative for all his hard work and wants to reward him with a higher salary and position within the company. So maybe he gets a new business car, he buys his wife some new jewelry, and decides that heâ€™s taking the kids on vacation to Disney World for winter rick kelovacation. However, as the year draws on and April taxes approaches, many may wonder if their new bonus, or higher salary may influence their taxes for the incoming year. Maybe dad should decide differently about the vacation, the jewelry, and the car and start preparing for heavy taxes.
Thankfully, though, dad doesnâ€™t have to worry about that. There are six brackets on the tax forms, with different wages varying greatly. No need for concern. However, Rick Kelo, re-evaluating taxation, does point out that the middle class do pay the most percentage of their salary in taxes. Richard Arthur Kelo is a tax recruiter for Taxscout, Inc. with many years of experience in the tax industry. He also writes articles pertaining to tax and political issues. In one article about the Optimal Progressive Tax, he points out that actually the lower class pay the least of their salary in taxes.
Many may ask, how can that possible be? The lower class make less. They possibly don’t have much in savings, don’t have a car, and don’t own a house. So how can they possibly be able to keep most of their salary. But that’s just the thing. Because they don’t have many investments, they pay less tax. Whereas, those who have more investments, pay more of their salary in taxes. Also, those who make more money also pay more in taxes. Many say, tax the wealthy, however they simply move their businesses elsewhere, which hurts the United States economy.
â€˘ Richard Arthur Kelo on the progressive income tax rate says that if taxes were raised for the lower class, and decreased as they began to earn more and more money, it would benefit everyone. The poor would work harder to earn more money so that they can pay less taxes. Those in the middle class wouldnâ€™t have to see most of their salary slip away after working so hard, and the wealthy will bring their businesses back to the states. It also gives a disincentive for those who work the bare minimum so that they may earn welfare benefits.
Published on Oct 12, 2016
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