One of the things about our tax system that makes it so complicated for the American public is the fact that it is not just our taxes that vary with income level. Our federal taxes are the same for everyone, but the state taxes differ based on where you live and what kind of business you are engaged in. Taxes are also not the same for certain types of business such as health care, education, or energy.
One of the things that has made our tax system so bad for the average American is the fact that we have so much income inequality in this country. We’re paying taxes based on the income level of our business, not just the income level of the person who is personally making the money. That’s because we’re not looking at the total income of an individual who is a business owner.