Inequality between the rich and poor has grown wider ever since it started after world war II. The difference in the gap are supported by the two party groups in the government. Liberals favor helping the poor and not worrying about how much it would cost the government to support the poor and help them get their lives on the right path.Conservatives on the other hand believe that the rich are contributing a lot to the economy, they have the right to keep the amount of money they want.
They have the power to make change in our nation and for them to use their money on taxes is pointless. Based on the reading by “yes, the rich are getting richer by Maggs,jones” It tells us that “skills and education don’t explain why some of them earn more.
Do the higher skills and greater productivity of tech-savvy workers, doctors, and lawyers in an Information Age economy explain why the unskilled are falling further behind? No — other research shows that wages, after inflation, lagged behind productivity for 90 percent of workers over the past 35 years.
Those at the very top of the income scale reaped all of the gains provided by the productivity of everyone else, including a lot of techies and other highly productive workers. Something much deeper than education or the tax code lies at the heart of the economic divide.”
Taxes between the rich and poor has began to hurt not only the people but also the nation as a whole. Based on income inequality article “ economists at the firm argued in a recent analysis that “at extreme levels, income inequality can harm sustained economic growth over long periods.”
The firm, citing the United States as near these extreme levels, reduced its 10-year growth forecast for the economy to a 2.5 percent annual rate, down from 2.8 percent five years ago.
Already, in the new millennium, the pace of US economic growth appears to have slowed from historic norms.
The challenges for state tax revenue flow largely from that wider challenge to economic growth. The faster the overall economy grows, the faster state tax receipts tend to rise.
Beyond that, though, states face a particular challenge: When a larger share of overall income goes to the rich, it means also that more income is coming in the form of capital gains on stock rather than traditional wages.” Families are starting to not be able to meet the standard of living in their states because they are not able to afford it anymore.
Tax inequality by Fredrick is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.