Tax Differences

Tax Difference between Rich and Poor Over the years, there have been a lot of discussions on the equality that has become more and more prevalent in the United States, and how this has a negative impact on the overall development of the country and there have been a number of proposals that have been developed to help in reversing these changes of inequality. Considering the social elements and the purchasing decisions there is a need to focus on the needs of managing the income distribution and economic inequality in society (Frank 1985a; Hopkins and Kornienko 2004). The overall inequality in the society has been related to the negative development of the country and there has been an interpretation that the increased inequality is dependent …show more content…
Here if technology has been the main source for the inequality then the focus and attention should be on encouraging the workers in the industry to acquire higher skills and this in turn will ensure that the individuals are in greater demand. Here it will not be possible to reduce or curb the technological development, however it will be possible to help and encourage the employees to gain more skills and to be able to create demand for them in the industry (Sutter, 2013). Hence, policies can be developed to help induced to improve the position of the employees. Higher economic efficiency is based on faster response of skills supply and demand and this should be the mantra to be followed in the current times where there is a race between technology and …show more content…
If the rich were able to enhance their wealth with zero taxes then this would be an efficient economic remedy (Grennes & Strazds, 2014). This will help cover up a number of loopholes in the tax codes and this will bring in favor special tax bases, which will enable the government to gain the same levels of tax revenues however at lower tax rates. This will also help and permit for better economic efficiency as well. There are a number of growth-enhancing policy reforms, which can be adopted which sill help in reducing the income inequalities and will help in improving the quality and reach of education. The reforms are important to increase the human capital and are crucial for improving the overall living standards as well. These also are an effective means of reducing the labor income inequalities as well. A detailed analysis has shown that with the rise in the workers and the secondary education, there was an equal decline in the overall labor earnings inequality as