Wages and Taxes

Contractarianism is an approach that significantly fits in addressing issues that relates to taxes and wages in the society. The approach identifies that there is need for a mutual relationship between the government and the people. The agreement upholds morality of ensuring that the government has some control on the activities of the people. Indeed, as a representative of the people, the government has authority to present the interests of the society. It is immoral for a society to have a huge gap that exists between the poor and the rich. The gap originates from skewed payment made to people in different positions. Government intervention is necessarily through the approach to ensure that people afford a decent living. Contractarianism identifies that when people or employers have to decide wages for their people they are likely to exploit them. The situation results in giving relatively low pay that does not match the effort of the people. However, through government intervention, the employers are compelled to give some minimum wages to their employees. The approach reduces incidences of exploitation of the public by their employers. 

Additionally, contractarianism is important in supporting taxation program that provides equality in the society through ensuring people pay taxes on basis of their income. The approach identifies that people in the society have varying wages and it would be immoral to tax them in the same way. Indeed, individuals who earn more require paying high taxes to the government. The situation results to generation of money by the government, which supports development of all the people. Further, contractarianism ensures that the rich pay extra taxes, which uplift the lives of the poor in the society. Actually, the approach encourages a situation of win for all the people in the society where the poor benefit from programs that get funding from taxes of the