Rich individuals are ignoring these troubles, shipping their business operations out of the country, thus furthering the downward spiral of the economy (Sachs). To make matters worse, this has become in a large part a political issue, because the rich can influence candidates with funding, where the poor and working class cannot (Sachs). Something similar occurred in America in the 1920’s. New industry fortunes pushed up incomes at the top of the scale while immigrants made up the wage floor (Sachs, 2011). Franklin D. Roosevelt scorned and worked against the minority in the 1920’s that had such a powerful influence over the majority of the country at that time (Sachs).
(Government is Good, What is Really Wrong with Government”. This problem is on the uptick as the salaries of CEOs continue to increase astronomically while that of ordinary Americans stall and in some cases even decline. Not only is this matter an economic dilemma but it is also a social and political one as well. This fiasco has led many Americans to believe that the bank of justice has gone bankrupt.
The lower classes are suffering as the upper classes continue to thrive, and this must be improved if the United States expects to be a global economic leader. The tax cuts for the wealthy have caused the great divide between classes to separate further, and tax increases for the wealthiest Americans will not only help to improve this income gap, but they can fund programs that will help the lower classes. In Oct... ... middle of paper ... ...late the economy have been proven ineffective, as they promote inequality between wealth classes. We can benefit everyone through these increased taxes, funding new programs and distributing wealth more equally among the population. The wealthy may disagree, but in a country increasingly divided by income, we may not have a choice.
Surviving in America has become increasingly more difficult due to the Government’s lack of oversight which causes the income gap to increase and the middle class to disappear. Due to an extreme gap of income between the wealthiest 1% and the remaining 99% in America, the middle class is dissipating to nothing because of unequal distribution of wealth. Poverty in America is a major issue that can and should be addressed as soon as possible because unequal distribution of wealth is causing greed, controversy and hate among millions of citizens. Although an income gap can be very inherent in capitalism, the Government should do more to help combat income inequality and unequal distribution of wealth because it takes advantage of the public and completely dissolving the middle class. An income gap is sufficiently killing the American economy and the Government should step in to help fix this issue.
1. Tax Cuts Caused Income Inequality Income inequality is a big problem in the United States because the top, wealthiest American saw huge increases in their incomes, which the rest had their incomes go down. Bottom people do not have the same amount of money and the opportunity to move up the social ladder as the rich people do. In order to reduce income inequality, the government needs to tax the rich people more, and give poor people more money and more social services - education, food subsidies, health care. Tax cuts are only benefiting the richest people, and will widen the inequality gap between the rich and the poor.
With the poverty rate at a 15.0 percent in the 2012 Census Bureau, Americans who signify this disturbing figure should fight to demand tax increase of the upper class. According to DeNavas et al., “there were 46.5 million Americans living in poverty (DeNavas et al. ).” In affects to the Bush tax cuts, numerical data proves poverty rate besides measure of poverty are immobile; contrast to former estimates reckoned in earlier years. As rich people carry on clasping extreme salaries, the poverty rate remains simultaneously impacted. Lower social classes hassle to make ends meet, let alone fulfill taxes, nevertheless, the wealthy and large corporations reimburse less than a fraction of their share.
To even begin to think about possible solutions to the current state of the economy, one must first understand the origin of our problems. We are in a recession today because of a weak job market, risky mortgages, and a heavy reliance on faulty financial formulas in the stock market. For many people, it seems to be harder to get a job now than ever before. These feelings are well supported by cold statistics. Information gathered by the U.S. Bureau of Labor states that in 2006, about 5 million Americans were being hired every month.
Tax Consequences of Economic Failures June 13, 2007 is the day that Richard C. Cook claims in his article, “It’s Official: The Crash of the U.S. Economy Has Begun.” In the past couple of years, months, and weeks, the United States economy and stock market showed significant failures and inefficiencies to the world. Perhaps the greatest evidence signaling the recent economic meltdown is the subprime mortgage problems that started a little over a year ago. The burst of the U.S. housing market bubble was caused by a combination of risky lending and borrowing practices and higher interest rates coupled with dropping housing prices, making refinancing more difficult. To deepen the drama, Wall Street’s excessive debt and unsustainable practices became more and more transparent. There was and still is tremendous turmoil amongst the Wall Street mammoths and the drama is certainly no longer entertaining or cheap.
: “…the most worrisome problem is inequality: that wealth is concentrated into the hands of a rich minority.” Because of this, many Americans and politicians are arguing about either “raising the taxes on the rich” or “supporting the richest sectors in America” (Thomas, 2011) to stimulate the economy. In the articles I have read in They Say, I Say: The Moves That Matter in Academic Writing, both Cal Thomas and Brandon King seem to believe that the government should not tax the rich minority more than the poor majority. I disagree with both Cal and Brandon and believe that the rich should be taxed more than the poor. However, the income from the taxes should be put to use for the betterment of the poor majority of America. Do you think that the American government is out of control?
Buffet, who has an estimated fortune of $58.8 billion dollars winces at the fact that he pays less taxes than some of his office workers (Forbes). Not only does this concept seem absurd but it’s just plain wrong. Yet, many economists argue that by raising taxes for the wealthiest Americans in the nation, will not help our government stable our wailing economic crisis. They argue that since the percentage of individuals who are considered wealthy is only one percent, raising their taxes will not help to close the deficit in our economy. According to the literature raising taxes for the wealthiest one percent of Americans does increase the revenue and enables legislatures to be able to fund existing programs that are at risk of being cut; in addition, with the new revenue legislatures are able to create new programs that benefit low income citizens.