Tax shelters for the wealthy and tax burdens on the poor promote Cox and Alm’s theory. In addition, the prejudices in attaining the American Dream go beyond the distinctions between the rich and the poor. Distinctions are made due to social class, religion, ethnicity and race, as well as education levels and gender leave hard workering, intelligent and truly qualified individuals overlooked and unconsidered. The caste system that Krugman refers to is encouraged by these kinds of class distinctions (Krugman 64). It is obviously ill-advised to say that everyone should be paid the same salary for their work.
A flat tax system will basically penalize the lower income americans. Everyone has to buy the same amount of necessities as anyone else. So with the flat tax system stating everyone pays the same amount of income tax, after all the necessities are purchased, the lower income people will have a drastic amount of less money left over to pay their taxes. Basically this states that the rich will only get richer. Converting to a flat tax system would mean everybody would give an equal percentage of their annual income earned for taxes.
Income Inequality Income Inequality or “wage gap” is a big topic for freedom fighters and liberals for the simple fact that it isn’t equal for everyone. Because the wage gap is so prominent it's one of the biggest “facts” that discrimination is still apart of everyday American society. The wage gap from these radical interest groups think the economy is get a dollar take a dollar instead of a free flow economy. This misguided idea of the economy is absolutely not true and isn’t at the fault of the Government, but the people. One of the arguments used is that we could regulate and tax the 1% income because that would be “fair” but these numbers show how harmful that way of thinking is.
Sales tax is income elastic; because of this fact, consumers have a higher tax incidence and carry the burden. From this, it has been evidenced that the tax burden is vertically unequitable and can be seen as unfair to the less fortunate. Sales tax is paid by retailers, which is dependent upon their sales revenue. However, since the demand of consumers is inelastic and can vary based on market and economic conditions, this burden is felt more by lower income individuals and families. However, it is important to note that the tax burden is independent of who physically pays the tax.
The current tax policy in the United States is unfair to Americans, specifically ones who love to shop. Sales tax percentages may vary depending on the parish where individuals reside. If you are a big spender, the tax can take a huge toll on your bank account rather than the person a few states away who buys the exact same merchandise as you, but pays less due to the lower tax percentage. Although revenue from sales taxes helps fund basic services and initiatives such as public safety, education, and recreation, it is in the best interest of our country and its citizens to revise or replace this policy by making the percentage the same overall in every state. Unfortunately, Louisiana shoppers are forced to pay highest average sales tax in America which is why it should be
This linkage is stronger than links between social mobility and poverty. “Research shows that the whole of human life existing inequalities and lack of contact between social mobility.”(Blanden, 2009) People’s well being may direly depend on income inequality People 's well being may directly depend on income inequality because they think that a highly unequal society is unfair, or because the utility loss is due to the low status of poor countries may gain because of higher status than practical wealthy. “Although many people think that income inequality is a social disease, and to understand that income inequality has many economic benefits is very important, is not the result of damage to a well-functioning economy”(Ellyatt, 2013) Equality of opportunity may be harder to achieve in an unequal
By offering those currently here an opportunity to work for legal status, Americans benefit from the additional taxes paid by them, lessening the burden on taxpayers. They will have the same opportunity as American-born natives, while contributing to the community and government as all other citizens do. American people can be employed in higher paying positions as the lower paying positions are taken care of by the illegal immigrants, raising their average incomes. By implementing this plan, it gives illegal immigrants great opportunities they came to America looking for, while easing the American people’s complaints of them not paying their fair share of taxes and taking their jobs. The government gets more tax income, more jobs are created by having a larger population, which creates a need for more teachers, more road workers, more fire fighters, and police.
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
Even though reformers wanted to improve the conditions of the average working men, they were more prone to aid the corporate monopolies. Joseph Huthmacher contradicts Mowry when he states, “[..]indicates the basis for urban lower-class interest in the many types of social welfare and labor measures” (Huthmacher 13). He says that because the lower-class was mostly immigrants they did not care about the politics of the United States of America. The ideal society for reformers in Huthmacher’s eyes was a society where the blue collar workers were treated as equals to the white collar ones. They wanted there to be no visible line between rich and poor.
A). Only wealthy people were getting the benefits of getting rich and the poor get poorer. The wealthy people were also taking advantage of the labors because they have more money and the poverty people did not have any support, unlike the wealthy people. However, in 1909, the 16th Amendment was pass which allows the Congress to collect income taxes so that the government could help the poor. Federal Reserve Act was also passed in 1913 which created a banking system to regulate nation money supply.