Happy of the rich Recently, the most of countries have social problems. There is big gap between rich and poor. People want to earn a lot of money because it helps them have comfortable life and will become richer. As a matter of fact, the people who earns higher salary will feel more satisfied with their lives (Adams, 2013). They will have more positive feelings feel smarter and when people become richer (Carlson, 2013).
This is such an important issue to me because I come from a middle class American family that would like to pay less in taxes, and I believe in equality for all. The underlying problem of this issue is that Congress doesn’t vote based on what the majority of its constituents want, but rather what makes the congressmen the most money. They are more concerned with pleasing big business America and the wealthy than taking care of middle and lower class America. How taxes are imposed is of major importance to all Americans. Reforming the tax code to implement a flat tax is often offered as a solution to tax inequity.
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.
Instead, it has negative immediate effects on the taxes, the population’s incentive to invest and the private sector. It has been established that taxes must be increased to provide the government with more spending money. As a r... ... middle of paper ... ...onomic freedom of a country. Since a government’s income comes from taxes, countries with a high percentage of government spending tend to have lower freedom indexes. The best place to put money is into the hands of the people, who are able to spend it more effectively compared to the government.
The government would most likely do this by raising taxes for the rich to fund social programs or by forcefully increasing minimum wage. Due to the growth in distance between the rich and the poor in the world I mostly agree with the source however, if the government 's power is not limited they could make the economy worse. One of the ways that a government can display their power is with their ability to affect the flow of the economy. The government can manipulate interest, spending, money supply, and taxation in order to change or not change how a country operates. Due to the issue of the boom and bust cycle, the periods when a country is thriving and when they are in poor conditions, the two main ways a government can choose to run a country, keynesian and supply side
“A majority adults believe that “people should be able to accumulate as much wealth as they can even some make millions while others live in poverty” (pg. 355 Social inequality). This explains why so many of nation 's rich continue to thrive. The “system” is least likely to change and will not increase opportunity or equality for many of the working class and the poor. The people on the top have more political influence and authority and with that comes power that can secure economic stability for themselves while increasing poverty for others.
Krugman points out how despite the obvious and ever growing gap between the rich and middle class in terms of wealth increase, Republicans tend to vote for tax cuts for the rich and for decreases in funding for programs that benefit the middle and lower classes of society, such as Social Security, Medicare, and Medicaid. Cutting funds for these services puts the middle and lower classes at even more of a disadvantage than they already were. Meanwhile, the rich receiving more tax cuts means they receive more money, furthering the economic wealth gap and increasing the money they can spend to influence politics. Krugman suggests the solution to the problem is increasing taxes on the
: “…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?
In fact, there are 480 different types of tax forms (Website). The current tax system is also very unfair for the wealthy. Because it is a progressive tax, it is higher for people who have higher incomes. People should not be punished for being successful. If a flat tax policy were instituted, then it would simplify the complicated tax system, create fairness within the economy, and promote a desire to thrive financially.
The American deficit grows every day, along with the wealth divide between the wealthiest and poorest Americans. The nation’s financial standing is worsening by the second, and something must be done to improve it. The richest Americans are only getting richer in this time of economic crisis, and tax increases for the wealthy are a viable way to more equally distribute wealth throughout the lower classes in the United States. It may be true that some of the wealthiest citizens have earned their money, but action should be taken to help the struggling majority of the country instead of the privileged few. The United States has a responsibility to give the lower classes an opportunity to rise out of poverty, and if the lower class continues to grow like it is now, this nation could have larger problems to deal with in the future.