Topic > The pros and cons of the flat tax - 1027

Government. Supporters of the progressive tax believe that “an automatic increase in tax revenue is generated by a broader tax base” (Piana). To the contrary, historical facts have shown that “the average federal tax rate for the top 1 percent of income earners fell by 1.1 percentage points in 1997 and by an additional 1.5 percentage points in 1998. Despite the cut, individual income tax revenues increased by 9.8%. percent in 1997 and 10.6 percent in 1998” (Russell). While raising tax rates would raise revenue, lowering the rate would raise revenue substantially more. This is caused not only by the fact that the nation's wealthiest earn more, but also by the fact that it would push the average family to earn more, which in turn would cause economic problems.