If the US federal income tax deductions for mortgage interest and state and loca

Question

If the US federal income tax deductions for mortgage interest and state and local property taxes are eliminated (with no other change in federal tax laws), many taxpayers will have to pay more tax. Describe how the tax increases would be distributed across income classes. Would taxpayers with higher taxable income have bigger increases in their taxes than taxpayers with lower taxable incomes? Would average tax rates of taxpayers with higher taxable income rise more than average tax rates of taxpayers with lower taxable incomes? Explain.

Explanation / Answer

taxes are one of the major sources of income for any governement. they will collect taxes from the rich commkunity and the same will be spend to the desired and needed people who are poor and unable to fulfill their needs. the people who are earning more revenues will feel the burden, but they can not avoid tax payments. they need to pay taxes to protect their nation and to provide benefits to the poor.

usually because of the earnings gap, the gap between higher tax payers and lower tax payers are becoming more difficulty. the reason for this is inequality of wealth distribution.

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