Income inequality is the unequal income brought in by people who hold the same position. This is based off of gender, education, or even a person’s social status (Investopedia). In the United States, income inequality can be seen in all fifty states (Sommeiller and Price). Not only is income inequality present in every state, but it has been seen in the federal government as taxes are based on income. Depending on how much a person makes, tax percentages can vary a person’s state or federal revenue. Income inequality is also a result of often biased hiring decisions. For example, on Wall Street seventy-eight percent of employees are male, and only four percent being Hispanic and African Americans. Further, out of five-hundred companies only
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These Americans feel that the government insures that the wealthy stay wealthy by taxing other classes, and by the wealthy using tax loops. Tax loops are “laws governing taxation that allow people to reduce their taxes.” (Houghton) On the other hand, many argue that income inequality is actually fair. For example, having a higher education can increase an hourly wage compared to others in the same positions. Further they argue that gender based pay is to be expected because of the different ambitions of men and women. In a Harvard study they found that “compared to men, women have more life goals, but fewer of them are focused on power,” which can explain why there are not very many women that have CEO positions. It has also been shown that men are more and likely to go for professional opportunities and want more power than women (Nobel). Finally, in America some people think that there is not income inequality, because of other factors that need to be considered to show why people make more money than another person, particularly someone in a highly skilled position. Others may consider a certain race as inferior, because races other than Caucasian, have a higher dropout rate which makes them more likely to not have a high paying job and to have a higher unemployment rate and poverty
These Americans feel that the government insures that the wealthy stay wealthy by taxing other classes, and by the wealthy using tax loops. Tax loops are “laws governing taxation that allow people to reduce their taxes.” (Houghton) On the other hand, many argue that income inequality is actually fair. For example, having a higher education can increase an hourly wage compared to others in the same positions. Further they argue that gender based pay is to be expected because of the different ambitions of men and women. In a Harvard study they found that “compared to men, women have more life goals, but fewer of them are focused on power,” which can explain why there are not very many women that have CEO positions. It has also been shown that men are more and likely to go for professional opportunities and want more power than women (Nobel). Finally, in America some people think that there is not income inequality, because of other factors that need to be considered to show why people make more money than another person, particularly someone in a highly skilled position. Others may consider a certain race as inferior, because races other than Caucasian, have a higher dropout rate which makes them more likely to not have a high paying job and to have a higher unemployment rate and poverty