It will cause positive impacts on the economic development of the country when people live a happy life. In order to promote the level of people’s daily life, the government decide to establish a progressive tax mechanism. It allows the low- income groups pay a smaller amount of tax than high-income groups. Due to high-income people pay more taxes, the government increase tax earnings and put taxes into the investment of infrastructure and healthcare systems. In a certain degree, the burden of public finance of government will be weaken according to release the progressive tax system.

In fact, the consistent percentage of tax payment is not suitable for people who have different incomes. The progressive tax mechanism will provide some feasible recommendations about how to make a reasonable tax payment strategy. The low incomers will retain their earnings and just pay for the necessities in the daily life. It will be beneficial for them to drive and stimulate the economy. For the degree of contribution to society, the high incomers have enough resources and materials for urbanization construction and talents training base. The progressive tax system could also positively support the low-incomers to pay less sales tax than high-wage earners when they bought the same price of commodity. The sales tax could be adjusted flexibly and reduce the contradictions caused by excessive sales tax for low-income people.

However, once people earn over 14.7 million dollars who could not pay the indifferent percentage of tax. According to the percentage of salary construction, they could not be able to pay the flat tax like the poor rather than the higher tax fee. In order to implement this progressive policy, we could assume that there are 10% people with a monthly salary of $100,000, 30% people with $68,079 salary per month and 60% people who just earn $10,275. for this condition, the low-incomers just need to pay 11% tax, the mid-level workers could pay 14%~16% tax and the high wage earners should pay 20%~28% tax.

The percentage of the tax payment could be modified and drafted in accordance the national conditions. If there are large scale event or the emergent public healthcare issue, government could distribute funds to support these activities or fight against the emergent outbreaks in timely. All in all, the low-incomers should not worry about the high taxes becoming a burden on them. The higher incomers pay more taxes so as to increase the financial revenue of the country.

There is no doubt that the progressive tax system has improved the quality of our life. When they keep in a good mood, they maybe try to do some physical exercises,take part in communities activities and initiate some public welfare events.

Some authoritative researches show that the overall expenditure couldn’t be good at the national development. It is said that the burden of public finance has not been released, which could hinder the progress of education or military investment. The progressive tax mechanism aims to create a social environment with satisfaction.

（Writer：Frid）