Incidence of wealth concentration in the hands of a select few in a country is increasing worldwide. While there are people in many countries with substantial earning potential, taxation policies favor select few to get away with minimal contribution to the state exchequer while heavily taxing the rest of the citizens, creating a stark wealth disparity in the social classes. Thus, I completely agree that people with higher income should be put in higher tax bracket and the essay will discuss the reason for the same.
Many countries have economies that favor a few wealthy people to accumulate more wealth over time. This is primarily achieved by exploitation of the working class and availing various tax-saving schemes. Moreover, governments of many countries favor the rich class consisting of businessmen and entrepreneurs by aiding them with loan forgiveness and various avenues for tax savings. For example, leading businessmen get to invest their earnings into real estate, thereby saving on tax filings by showing investment.
Therefore, a fair taxation system that is based on income and does not provide for avenues for tax evasion is important. This would help to minimize the wealth gap in the population and the excess amount accrued in the state exchequer by increased taxes can be used for social welfare like providing free health care to the residents of the country and retirement funds for the elderly. For example, in countries like United Kingdom, which has higher tax bracket for higher income individuals provide a better quality of life for all the citizens. They have achieved the feat because of their taxation system. As a result of this, every individual in the country gets their basic needs met and wealth is not concentrated in the hands of only few people.
Thus, in conclusion, while people may earn a high salary, the concentration of wealth in the hands of a small class of wealthy individuals can be detrimental to the overall upliftment of the society. Hence, I am of the opinion that higher taxation of such individuals is required to keep a balanced and functioning society in a country.