Friday, January 23, 2015

19. Why wealthy Americans’ delusions about the poor are so dangerous

The financially secure Americans believe that poor people today have it easy. The United States tax debate has the majority of the people insisting that the rich are being persecuted by low-incomes and high taxes. Most of these people are very wealthy and are entitled to their own opinions. The true tax facts are that low and middle-income Americans are facing higher tax rates than the rich people. The Institute on Taxation and Economic Policy states that 20% of the poorest households pay on average more than twice the tax rate of the 1% of the richest households. They argue that the tax is causing a large wealth gap between the rich, middle and low class in the United States. Wiehe, the director of ITEM, says that “The problem with our state tax systems is that we are asking far more of those who can afford the least.” Many people who have a financially secured life cannot relate to these trends and do not they have a world impact. However, Standard & Poor released an article demonstrating that increasing economic inequality can hurt the economic growth and reduce public revenue. The report found that states that relied most on regressive levies as taxes are the ones with a larger economic gap. Therefore, these state and local tax policies are harming the country’s economy.
David Sirota, the author of this article, is clearly outraged with this injustice. David uses good and reliable resources. Although the author does not state which class he is in, throughout the article you can clearly see that he is, in a way, fighting for those who cannot fight for themselves; the lower class. His point of how unfair the economy of the country is, is proven through his research and percentages provided during his piece. This informative essay is interesting and shows one of the reasons why the economy of the United States is slowing falling apart. Those who have almost nothing are paying twice as much tax than those who have everything. Sirota concludes that all states that rely on regressive levies as taxes are harming their country and if something is not done now, the problem is going to get worse and eventually affect not only their country but the world; if it hasn’t started to affect the world already.

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