Taxes

Failing to report all or some of income

Report income gained through activities such as gambling and selling stolen goods.

Don't report all the tips they collect or money earned from garage sales, baby-sitting, tutoring, or yard work.

Ability to Pay

Benefits Received

Will not pay more taxes.

Will pay more taxes because they use more government goods and services.

Will pay more taxes because they have the ability to pay more.

Individuals who receive the benefit of a good or service should pay the tax necessary to supply that good or service.

Individuals who receive the benefit of a good or service shouldn't pay the tax necessary to supply that good or service.

People who earn more money should pay more in taxes so that people who make less money can benefit from them

It allows those with the most resources the ability to pool together the fund required to provide services needed by many.

It is considered more equitable as the burden of taxation is limited based on a person’s ability to pay.

People are motivated to pay taxes when they perceive that the money they pay to government is actually being used for their own benefit.

Benefits received from public goods and services provided by government are difficult to estimate.

It conflicts with income redistribution programs.

It discourages economic success since it burdens wealthier individuals with a disproportionate amount of taxation.

Progressive

Regressive

Proportional

Reduces the tax burden on the people who can least afford to pay.

Tends to collect more taxes than flat or regressive taxes.

Requires those with the greatest amount of resources to fund a greater portion of the services that we rely on.

More convenient to calculate.

Progressive

Regressive

Proportional

Progressive system

Regressive system

Proportional system