Taxation is one of the most debated economic issues, particularly when it comes to whether the rich should pay higher tax rates to support government programs and reduce income inequality. Some argue that progressive taxation, where high earners contribute a larger percentage of their income, is essential for funding public services, promoting economic fairness, and reducing the wealth gap. Others believe that higher taxes on the wealthy discourage investment, limit economic growth, and create inefficiencies in the economy. This project challenges students to engage in an in-class debate on whether the rich should pay more taxes, examining the economic, social, and political implications of progressive tax policies.

Students will be divided into two teams. One team will argue in favor of higher taxes on the wealthy, emphasizing how progressive taxation can reduce inequality, provide government funding for essential services, and prevent excessive wealth concentration. They should use case studies from countries like Sweden, Denmark, and Germany, where high taxation on the rich has contributed to well-funded public healthcare, education, and social programs.

The opposing team will argue against higher taxes on the rich, claiming that increased taxation discourages investment, limits job creation, and may lead to capital flight, where businesses and wealthy individuals move their money to low-tax jurisdictions. They should analyze examples such as Singapore, Switzerland, and the United States, where lower taxes on high-income individuals are credited with encouraging economic expansion and innovation.

A key part of this debate is examining the real-world impact of progressive tax policies. Students should analyze whether higher taxes on the wealthy lead to economic benefits or if they cause more harm than good. They should also explore alternative policies, such as flat taxes, wealth taxes, and tax incentives for businesses, to determine if there are more effective ways to balance economic growth with fair tax distribution.

The debate will conclude with a class discussion on whether taxation should prioritize economic fairness, efficiency, or a balance between both. The goal of this project is to help students critically analyze how tax policies influence economic stability, social equity, and national competitiveness.