Income

Particularly, income inequality. Income inequality is a rising issue between all social classes and races. Due to the evolving job market, outsourcing of products to other developing…

In the endeavor of increasing income equality, multiple laws, regulations and tax credits have been effectuated. For a period of three decades, economists have advocated the use of a tax system for this purpose. For example, transferring the responsibility to a tax system such as Earned Income Tax Credit (EITC) has been proven to be more efficient than other methods, such as the welfare system. The welfare system has not been completely transferred to a more efficient tax system due to political…

As a technique to recover from the Great Recession, the Federal Reserve has implemented an easy money policy which has added more than $1 trillion to income inequality (Belotti and Farley). One of the primary inequality factors under monetary policy has allowed programs such as quantitative easing to artificially injected money into the economy causing the equity markets to boom and interest gained from bank accounts to tumble. The prices of stocks, floating on this giant bubble, has exasperate…

Income statements are an important component provided to business leaders and potential investors to clearly illustrate the financial health of an organization. It is important to fully understand the information provided within the income statement to accurately ascertain the information provided. A mistake made in the creation of an income statement can have massive consequences. Business leaders must clearly understand policies regarding revenue and expenses in order to correctly assess…

educating individuals you do not erase income inequality you simply, “... rearrange the individuals within the inequality.” (Toles) An education may help one individual get a better income, but it will never erase income inequality. However, placing higher taxes on the top 1% of Americans could help end income inequality altogether. To begin with, America’s, “... current policy of facilitating wealth inequality through our tax system,” (Toles) has caused a major income inequality between the…

a solution to the issues within income inequality around the world. Income inequality is an unequal distribution of income to an individual. The problem of income inequality is that it affects our health and well being in a negative way, according to David R. Miller, the majority of canadians that have a greater income have a better chance of survival because they have the resources and income to get the medical care that they would need to recover (Fixing Income Inequality in Canada, 2013).…

Consequently, I have learned the importance of tracking income and expenses for tax purposes, among other reasons. Over the course of my ventures, I decided I had enough excess money to start a Roth IRA; however, this meant I needed to report my income. The first year I contributed to the account, I put in over one thousand dollars and had to pay self-employment taxes. Preparing for the following years, I carefully read the laws about taxing income and determined I could avoid such taxes by…

of income tax liability is not often a completely objective matter. It has become nearly impossible for the statutes, rulings, and cases to keep up with the ever-evolving business environment. In 2006, the Financial Accounting Standards Board (FASB) took a step towards curbing this ambiguity with the release of Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48). This interpretation brought forth many changes with regards to how companies go about accounting for income tax…

disappears into the economy chart. “The Depression and World War II dramatically reshaped the nation’s income distribution: By 1944 the top 1%’s share was down to 11.3%, while the bottom 90% were receiving 67.5%, The top 1% took heavy hits from the dot-com crash and the Great Recession but recovered quickly preliminary estimates for 2012 have that group receiving nearly 22.5% of all pretax income, while the bottom 90%’s share is below 50% for the first time ever (49.6%, to be precise).” It is…

consequences, and when inequality becomes unjustified. As a famous economic historian, Richard Tawney once noted: “What thoughtful rich people call the problem of poverty, thoughtful poor people call with equal justice a problem of the riches” [2]. Income inequality has been rising for almost four decades now [3]. This paper aims to…