Income Inequality

B
roughttoyoubyAlexBerg,AndreiFeceu,AllanGoetz,VictorLopez,MarellaSanchez,XiongThao

mentioned,conservativeswilloften
refertoitasclasswarfare,and
TheUnitedStatesofAmericais
whenisuseditmakeitseemthat
thoughttobeoneofthegreatest
thosewhoaretryingtofixincome
countriesintheworld.Itwould
inequalityarethebadguysand
seemthatitwouldbethebestof
givesthemabad
anydevelopedcountryoutof
reputation.Callingincome
themall,howevertodayweface
inequalityclasswarfaregivesita
moreissuesthanever.Todayit
badstigmathatpoliticianswould
isaconstantbattleagainst
ratherstayawayfrom.Although
racism,watershortage,debt,
themixedeconomykeepsthe
poverty,pollution,human
countrygoing,itstillisnot
trafficking,drugs,immigration,
enough.Ifitactuallyhadan
sexualharassment,etc,thelistof
outstandingeffectwewouldnot
issuescouldruncontinuously

seepeopleinpovertyinsucha
anddiscouragingly.

developedcountry.
Nowthe

Thetop2%holdmoremoney
answerisnottochangethe
thaneveryoneelseinthe
capitalismwehavenow,buttolay
populationcombined.Whilethe
outlawsorregulationsthat
fewthatarerichhavemillionsto
dispersethemoneysothat
playaroundwith,therestofthe
everyonehasachancetomake
populationhastoliveonthe
thelifethattheywouldlike.Thisis
moneythathastobedistributed
notsayingthatweshouldallbe
amongthem.Itsworsenedsince millionaires,buttomakesurethe
globalization
increased.Ifeel
thatthistopicisoftenoverlooked peoplehaveopportunitiesto
alwaysbetterthemselves.

becausepeopledonotrealize
Currentlythisisnotthecase.Due
Butthatisnottosaythatsome
theaffectithasonthem.People
toincomeinequalityrising,the
donotlivehappilyhereinthis
wouldratherlookat
ideaofopportunityinequality
countrythatwehearisoneofthe environmentalorimmigration
lowers.
richestcountryintheworld.This
issuesbecausetheycanseethe
wealthycountryhasbroughton
impacttheyhaveonthem

somegreatfortunetomany
directly,buttheproblemwiththe
peopleincountry,orhasit?As
unequaldistributionofmoneyis
richaswemaketheUnited
justasimportantasalltheother
Statesseemthemajorityofthe
issuesandmustbecompletely
moneyisheldbyfewinthe
addressed.However,it
country.Oneofthebiggest
sometimeshasproblemsbeing
problemthatisoftenoverlooked
addressedingovernment.Thisis
bymediaandthecitizensis
becausewhenitis
incomeinequality.Income

inequalitycanbedefinedasthe

ItJustAintRight!

unequaldistributionofincome
amongonlyacertainamountof
thepopulation.

Timeline

1964RevenueActof
1964

expandwhenweknowcreating
governmentjobsisasecure
strategy.Ithasbeendonebefore
andtheexampleisintheHoover
Damconstruction
.

1981Economic
RecoveryTaxActof
1981
1986
TaxReformAct
of1986
2001EconomicGrowth
andTaxRelief
ReconciliationActof
2001
2003JobsandGrowth
TaxRelief
ReconciliationActof
2003
2010TaxRelief
UnemploymentInsurance
Reauthorization,and
JobCreationActof
2010
2012American
TaxpayerReliefActof
2012
2013Surtaxon
InvestmentsIncome

TheyTookYerJob!

We
MUST
raisethe
demand
of
jobs.Raisingthedemandforjobs
inallclasseswouldaidin
diminishingincomeinequality.
Thewayweraisethedemandfor
jobsisbyincreasinggovernment
jobs.Thesejobscouldbeat
federal,state,orlocallevelof
government.Themoneywould
comethetop1%ofwealthy
Americans.Sureitdiscourages
businessownerstoexpand,but
raisingtaxesguaranteesjobs.
Whywaitforbusinesstomayor
maynot

governmentwhencollectingtaxes.

Ourmassive,sprawlingtaxcode

simplydoesntworkforaverage
TheconstructionoftheHoover
Damgavejobstothousandsand Americans.Taxpayersspend
over6billionhoursandupto$378
leadtomanygreatthingsafterit
wasdone,oneofwhichwas
billioneverysingleyearcomplying
hydroelectricpowertothenew
withoureverchanging,
townsandcitiesthatcouldnow
evergrowingtaxcode.Wemust
bebuiltaroundthearea.This
implement
reforms
thatmakeour
wasmonitoredby
government
systemsimplerandfairer.Ina
agencies
.Bycreating
typicalyear,theIRSestimates
governmentjobsnotonlywouldit
helpdecreaseincomeinequality, thatforeverydollaritcollects,
another19or20centsisowed,
butalsohelpthoseinpovertyIn
butnotpaid.Thisshortfall
additionthejobswouldnotjust
belowpayinglaboriouswork,
amountedtobetween$312billion
theywouldincludepositionssuch and$353billionin2001.Small
assupervisorsandotherskilled
businessesfailtoreportabout
workers.
30%oftheirearnings.Babysitters

andgardenersfailtoreport80%,
TimeForaNewTax
saystheIRS.Inpart,thetax
Code
systemisburdensomebecause
peopledodgeitthroughloopholes

AlbertEinsteinsaidthat

"Everythingshouldbemadeas
simpleaspossible,butnotone
bitsimpler."Goodadvicefor
peoplewhowanttoredesigntax
systems.ReformingAmerica's
taxcodetoasimplerflatlinetax
wouldbeeasierononethe
taxpayertopaythetaxes,but
.

alsoontheIRSandthe
Withtheraisedtaxeson
newfeetocoverthestates
corporationsinCalifornia,the
firefightingservices.Through


WhatsCalifornia
Doing?

AccordingtoScarpelli,Nearly
80%oftherevenuetheState
collectseachyearcomefrom
PersonalIncomeTax
and
Sales
Tax
Currentlyunemploymentis
highat10%,whichmeansthat
consumershavelessandless
disposableincome.California
doesnotahaveasignificant
revenuebecauseofthese
hardships.Whenunemployment
ishigh,consequently,thereis
lessincometax.Ifpeoplearenot
makingmoney,theyarenot
spendingmoney.Eveniftheyare
makingmoney,theymightfear
forthesecurityoftheirjoband
spendless,whilesavingmore.
GovernorJerryBrownhasbeen
asupporterofraisingincometax
onthe

propereducationchildrenthat
grewupinpoverty,canget
themselvesoutofit.Without
propereducation,thoseInmany
casespeoplewouldarguethat
welfare
isjustawaypeopleto
becomelazyandlikemanyother
peopleIbelievethatpeople
shouldnottakeadvantageof
this.childrenhaveless
opportunitiestosucceedand
wontbeabletogetthemselves
outofpoverty.

Ders,WhatAreTaxes?

Abillthatwasamendedthisyear
imposesataxonretailers
measuredbythegrossreceipts
fromthesaleoftangiblepersonal
propertysoldatretailinthis
state,oronthestorage,use,or
otherconsumptioninthisstateof
tangiblepersonalproperty
purchasedfromaretailerfor
storage,use,orother
consumptioninthisstate.The
PersonalIncomeTaxLaw
imposestaxesonpersonal
taxableincomeatspecifiedrates,
andtheCorporationTaxLaw
imposestaxesupon,or
measuredby,corporateincome.
Thepurposeofthisbillisto
persuademoreentrepreneurship
andbusinesscreationthrough
thenewcorporatetaxrate.
Tax
expenditures
thatareplaced

withintheU.S.taxcodeare

givingtaxbreakstothosewho
wealthy.InCaliforniaProp.30
needthetaxbreakstheleast!
passeswhichraisedincome
Thegovernmenthasto
taxesonthoseearningmorethan
manipulatethetaxcodeinorder
$250,000ayear.In2010,prop.
tofunddifferentprojectsor
26passedwhichcreateda
policies.

stategovernment
willhavemore
spendingmoney.

EducationTheAnswer?

Thetopicof
education
isa
reoccurringthemewhenitcomes
topovertyandalthoughitisa
goodangletotackletheproblem,
itshouldbetheonlywaylikeitis
today.Throughrecentyears
educationhasbeenhighly
prioritized.

Currentlythehighereducation
systemsofwhatisCSUsand
UCs,accordingtoScarpelli,
comprisenearly50%of
budgetexpendituresannually.
Thisisclearlyshowinghow
importantCaliforniathinksoftheir
education.However,thepointof
attainingahighereducationisto
earnahigherincomeinthefuture,
butitseemsthattoomany
bachelorshavebackedup
becausetherearenotenough
peoplehiring.Dotothesurplusof
peoplethathavebachelors
degree,itisnolongerenoughto
procureadecentjob.Thistellsus
thatwehavesucceededin
education,butfailedinthereal
world.

Bibliography
Dudely,Dubnick,andGitelson,AlanAmericanGovernment:MythsandRealitiesNewYork,Oxford
UniversityPress,2014.Print.

Scarpelli,Craig.CaliforniaintheAmericanSystemMcGrawEducation,2011.print.

Reich,RobertB.HowToShrinkInequality.
Nation
298.21(2014):1217
AcademicSearchPremier.
06May
2014Web.5Oct.2015

Neuman,Scott."Rubio:SmallGovernmentCanHelpFixEconomicInequality."NPR.NPR,21July2014.Web.
01Oct.2015.