Class & Stratification: Taxes & the U.S. Citizenry

Background or Case Study
Social stratification is defined as "the hierarchical arrangement of large social groups based on their control over basic resources" (Kendall, 2012, p. 216). Specific groups may include the upper, middle, and lower classes, which have varying levels of access to monetary and social resources. Max Weber defines this reality as life chance. This is specifically relevant to the impact of taxation on the U.S. citizenry. In simple calculations, the lower class pays very little in taxes based on the assumption they are right at or below the poverty limit. Some would contend that the upper class often pays very little in taxes due to various tax shelters, designed to protect assets from taxation. A simple estimation of this reality then supports the idea of a supporting middle class; therefore, the greatest tax burden rests on this group of the U.S. population. Currently, taxes are calculated based on an individual or family's gross income. Obviously, the lower class is not impacted by this standard because they are already low; however, the upper-class individuals may be able to lower their overall gross income through various sheltering methods. This process essentially lowers the overall tax burden (as a percentage) for this group.
In response to this information, prepare a written essay, which meets the following outcomes:
• Are current and proposed tax policies perceived as fair? What is your reasoning?
• Debate the merits of the "flat tax" and/or "consumption tax" as a model for providing equity in taxation.
• How would these types of tax plans affect the middle class, the working class, and the wealthy?