Poor people have trouble getting jobs and putting food on the table. But if they raise the taxes for the upper class, it can motivate some rich people to move to another country. It also divides America. It can turn the lower class and middle class against the rich and have the rich against the poor and middle class. Two thirds of the US support higher taxes on the wealthy and a higher minimum wage as ways to narrow the wealth gap.
3.0 Consequences of income inequality The consequences bring by the income inequality is still a contradictory arguments on whether it is good or bad for the economic growth. In positive view, income inequality stimulatesthe aggregate economic growth. In negative view, income inequality slows down the aggregate economic growth (Andriuskevicius, Ciegis&Dilius, 2017). 3.1 Positive impacts on economic growth Income inequality reflects the rich become richer and the poor become poorer. The rich may choose to spend,give away, invest or save their money.
I also believe it is increasing because in our society today we have a lot of social and economic factors going on that is related to this. Socioeconomic is a economic and sociological combined total measure of a person 's work experience also there individual or their family’s economic and social position in addition to others, based on their income, as well as their education, and occupation. Socioeconomic is increasing because it basically refers to the less fortunate people .It also is for people in poverty and poor health. It still exists in America today it occurs when any resources are given to society which most likely are going to be distributed unevenly which will lead to this . It may typically go through the norms of allocation, that will engender whole lot of specific patterns along socially undefined categories of Americans .
Further reducing living standards. It also increase income inequality as the tax is fixed so the poor and the rich pay the same price. The advantages are higher government profit so the government can invest in merit goods and reduction of smokers in the long
A progressive tax is a tax that is based on income which is why it is considered more favorable for the poor. An example of a progressive tax is, of course, a personal state income tax. Therefore states that choose not to make use of an income tax cause an unreasonably large hardship on poorer individuals and families. One could also argue that because of this strain there is a greater need for state welfare because of the high unemployment and poverty rates, which could possibly be slightly lessened. Although a higher than average burden being placed on the poor is an important issue, I believe that the most important issue that needs to be addressed is the underfunding of public schools, especially in Texas.
It can be suggested to the people who have the authority related to this area that the minimum wages should be increased in the country, the taxes on the incomes of the people with super-high incomes should increase, removal of the tax loopholes, the strong incentives should be provided to the people and the organizations for inner-city job creation, capping of the pay of CEO and the laws should be strengthened on the areas such as compensation, nondiscriminatory hiring and promotion practices for the women and minorities of the country. Through these steps the effect can be diminished and the inequalityin the income of the people of the country can be reduced in the long run (Ferro,
There are above average and below average graphically have lined-up on the recent graphs. The marginal comparison has shown according to the existing level of financial reports. Economic inequality in the U.S. has been differentiated widely based on the income level of every state. If the state has been generated more income and accumulate financial stability, then, the financial distribution among the citizens of that state will be fair. For example, in New York, their income has been accumulated above the average per capita, because of increasing businesses and other private sectors that have generate shared-income.
The advantages of progressive tax are the systems reduce tax for people who can’t afford to pay and also progressive tax system allows to collect more taxes than flat taxes or regressive taxes, not only that the tax rates are indexed to increase as income climbs but this system has disadvantages too, things such as the system are unfairness for wealthy people or high-income earners. The different compare of progressive tax with regressive tax and flat tax is the regressive tax are completely opposite with progressive tax, because regressive tax take larger percentage from low-wage earners, for example, if two individuals buy the same goods and services, the tax would be higher percentage for lower-earning but for higher earning individuals, they would get lower percentage of tax, since regressive tax is opposite than flat tax are not completely opposite but still has different system, so the flat tax is not based on how many wealth on each people, it just takes same percentage tax on
Global income inequality: When compared to other nations, the U.S. is one of the richest despite the severe income gap among its own citizens. Although many U.S. citizens are classified as low-income, their wages are still a great deal higher than citizens from poorer countries. Most of the world’s top 1% live in the U.S., increasing the overall national average income. Global inequality is also seeing a decline as developing nations develop and become industrialized. In spite of growing populations, especially in underdeveloped countries, the economic growth brought on by industrialization has helped many families escape living in poverty.
Income inequality is a widespread occurrence affecting the global community. Income inequality is the gap between the world’s top income earners and the rest of the population. The ethical question is whether the world's top earners should help those with lower incomes. This debate has become more relevant in the last three decades due to the unnatural increase in the income gap. Without the support of the bottom 99 percent, democracies will lose their functionality.