Will Taxing the Wealthy Really Fix Income Inequality?

wealth-gap-converted

If you pay attention to any political programs or follow any news about the economy and taxes, then you no doubt have heard plenty of debate regarding income inequality. The fact is there is a lot of income inequality in the country. Whether you side with the haves or the have-nots, the fact remains that those on each side of the argument feel they have the right answers.

According to democratic philosophy, the argument goes that if you want to fix income inequality then you have to raise taxes on the wealthy and give more of that money to the poor or middle-class. It might sound like a good plan on the surface, however, a new report shows that in reality, if you really want to close the income gap between the wealthy and lower income classes, then policy changes are much more effective.

That’s right. According to a study just recently released by the Competitive Enterprise Institute, the difference between the economic brackets among the top and bottom levels is not as important as the living standard of those in the lowest economic levels. The study also noted that raising the minimum wage would end up having a negative effect because it would help drive the unemployment rate even higher.

According to one of the study’s co-authors, Ryan Young, giving people access to economic and job opportunities that will boost their standard of living is more important than focusing on the income gap. Young also said: ““Policy reforms that help poor people include access to affordable energy, access to capital for entrepreneurs, ending occupational licensing restrictions, an honest price system, and overhauling a range of regulatory barriers.”

http://dailycaller.com/2016/05/25/report-taxing-the-rich-wont-fix-income-inequality/

Posted in

Do You Owe Money To The IRS?

The vast majority of Americans get a tax refund from the IRS each spring, but what do you do if you are one of those who have received a tax bill? What do you do if you owe money to the IRS and can’t pay? The IRS encourages you to pay the full amount of…

How Some Big Companies Are Maximizing Their Tax Benefit

How Some Big Companies Are Maximizing Their Tax Benefit

How Some Big Companies Are Maximizing Their Tax Benefit There’s no question that the IRS is always looking for ways to get every penny they can from the nation’s taxpayers, whether they be individuals or businesses. On the other hand, many are also doing whatever they can to pay as little as possible, some, even…

Federal Government Still Facing Huge Deficit

Federal Government Still Facing Huge Deficit

Federal Government Still Facing Huge Deficit Does it seem like no matter how much money the federal government collects in tax revenue, they will still never have enough? For a lot of people the, answer is a resounding “yes.” The country’s Monthly Treasury Statement lends even more credence to that belief.  What does the Treasury…

The IRS is Not a Bully – You can poke a bully in the nose.

The IRS is Not a Bully You can poke a bully in the nose. This is the third installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in ways its founders never intended, until it’s…