‘Higher taxes for the rich! Higher taxes for the rich!” is a very popular cliché and a view held by majority in the community, however, it easier said than done. Due to many reasons it is hard to actualize this, but principally taxing the rich goes against capitalism, which is the dominant economic system of business operations adopted in many parts of the Globe. But this discussion is worth not having without answering the following fundamental question. Is it right to increase taxes for the rich?
Globally, it is unfortunate that the inequality gap of income and wealth among members of the society continues to widen on each passing day. In the case of Australia, has steadily been on its longest period of time of economic growth since the end the of the last century. This positive achievement has its fair share of concerns and heated debates about the distribution of benefits of this growth, and a widening disparity between the rich and the poor (Healey Justin, Poverty and Inequality in Australia, 2019).
In her novel ‘Atlas Shrugged’ published in 1957, Ayn Rand caricatures a picture of a world of unproductive people who want just to sit idle and “leech” the hard-earned wealth of the “prime movers” of this world. Therefore, the prime movers or the rich men go on strike to illustrate how significance they are to the society and display the unfair blocks the society puts in their way (Slemrod B. Joel). This is the argument held by a section of the society, majority being the affluent people. They believe that the world wouldn’t have been at such an advanced position were it not for them, and burdening them more with higher taxes will do more harm than good, by slowing down the economic growth and prosperity. It is believed that the success of one is solely a function of the hard-work, ability and intelligence quotient.
However, this position is held with an oblivion that all men start the race on a level ground and with equal resources. Apparently, a majority of the people believe that the state has for long privileged the rich, and so it fits that they be taxed higher than other citizens. However, the government is paranoiac to actualize these demands from the citizens for it views this action as self-defeating. Taxing them higher is viewed as a move that might slow the economic growth pace and even chase away investment opportunities, and in return move wealth to other country.
To conclude, it is not a surprise that this debate is always much heated and highly contentious. However, we must all come together and brainstorm on solutions on how to mitigate the rising inequality. Additionally, those in favor of higher taxes for the rich simply because of a yawning inequality gap should objectively review the subject and come up with solutions backed by non-partial backings.