Income Inequality In The Cayman Islands

Inequality is primarily the consequence of the way resources are allocated and society is organized. The determination of the allocation of resources is made by the government as they decide on taxation. Therefore, Inequality is primarily the consequence of wealth distribution and wealth distribution is affected by taxation.

Wealth is defined as the amount of assets that an individual has minus his/her total liabilities. Wealth results from saving and investing, however, the amount that you are able to save and invest are determined by consumption, the market real interest rate, and income.

Individuals with higher incomes are capable of saving and investing more than those who receive low incomes because after fixed and variable costs, they

These policies provide strict guidelines that must be met in terms of taxation. The United States’ tax system that is most concerning when it comes to income inequality is income tax because this is directly deducted from the citizen’s paycheck. However, this same policy is not enforced in the Cayman Islands. The Cayman Islands are known for their tax neutral jurisdiction as no one, rich or poor, pays income or corporation tax. And according to the Atlas of global development, the Cayman Islands have a higher quality of life than the United States - this is proven by the fact that the Islands actually provide homes and jobs for more expats than the united states, in terms of their

The United States uses a progressive tax system - this means that the more money you earn, the more taxes you have to pay. This is the reasoning as to why many cooperations and individuals store their money in places like the Cayman Islands - who are then affected positively by this issue of inequality. But, let’s remember that tax havens are never the only story because offshore exists only in relation to elsewhere. That is why it is called offshore. Citizen’s escaping from tax, must be motivated by staying wealthy, and even being wealthier than others - likewise, Rousseau argues that domination is motivation.

Jean-Jacques Rousseau was a Genevan philosopher, writer, and composer of the 18th century. In his book entitled “Discourse on Inequality”, Rousseau demonstrates that modern moral inequality is unnatural and unrelated to the true nature of man by examining the substructure of inequality among people and questioning whether inequality is mandated by natural