The Baha’i teachings advocate a progressive tax system:įor example, a rich person has a large income and a poor person a small income. Which system do you think is the fairest? The overwhelming majority of the world’s countries have some form of progressive taxation. Progressive taxation, economists and experts agree, reduces income inequality. People with lower incomes pay a lower percentage of their income in taxes-or no tax at all. Most of them are small countries, with two exceptions: Russia and Saudi Arabia.Ī progressive tax system has a graduated rate: the tax rate rises as the taxable amount increases. Thirty-nine countries in the world have flat tax systems. People pay the same fixed percentage, no matter how much they make. You hear this political and policy debate a lot lately: flat tax or progressive tax?Ī flat tax system has one constant marginal rate: the rate stays the same, regardless of income. – Baha’u’llah, Tablets of Baha’u’llah, p.
The Great Being saith: In this glorious Day whatever will purge you from corruption and will lead you towards peace and composure, is indeed the Straight Path. O my friend! In all circumstances one should seize upon every means which will promote security and tranquillity among the peoples of the world.
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