Combating Inequality May Require Broader Tax

by Jackson Stuckey

http://www.nytimes.com/2012/11/28/business/combatting-inequality-may-require-broader-tax.html?ref=business

In this article the author discusses how tax on the top percent earners is now becoming too high.  He states that this is helping in a short term run, but over time this will end up hurting our economy.  He sights how other developed countries have a much more even tax rate on citizens, something that we do not.  Taxes in the U.S., studies have shown, get more redistributed to from the wealthy to poor more so than in every other “rich” country.  I believe this is true, the data shows that the resources the wealthy are paying for most of the services for the poor, while the poor contribute little income to them.

            He then states that our government is one of the worst at “combating income inequality,” meaning we have the largest range in wages.  This is, he says, because the government cannot create enough tax revenue to create benefits that help the middle and poor classes.  He also cites that progressive tax codes do not in fact raise more money, when a more flat tax for everyone would.

            Other countries spend more money on government programs, such as pensions, unemployment insurance, disability, ect, but the citizens also pay more for this.  Every person contributes a larger percent to have these basic rights of citizenship.  Our government focuses more on helping the older demographic and the poor, and not so much the average American.  Although I do think that the rich should still be obligated to pay taxes than the poor, I believe the ratio should not be as high as it currently is.  For the poor and middle class to have multiple programs universally the extra finding needs to go to someone.