Income Inequality (Essay Sample)

Income Inequality
Name:
Institution:
Although the federal government uses the progressive tax system in taxing the incomes of the citizens, it does not reduce the income inequality. There exists one percent of the income earners who earn extreme incomes such that even if subjected to the graduated tax system, their incomes can never reflect that of the middle income earners. In order to ensure that the existing inequalities in levels of incomes earned don't exist, the federal government should devise a method of taxing the businesses and the wealthy more to redistribute the incomes equitably. The taxes thereon should be committed to projects that will benefit the entire people to improve their living standards.
Globalization and technology and the rise of income inequality.
The introduction of the technology has favored the skilled and led the unskilled to lose their jobs. The skilled have managed to secure high paying jobs because they have the relevant skills required to work with emerging technology in many organizations. Those lacking the required skills have been rendered jobless while others have been limited to certain jobs that do not require advanced skills to perform the jobs. As, a result the gap between the highly paid and lowly paid have widened in the recent years thus bringing about the income inequalities.
Political choices and the income inequality
Regressive tax laws have been passed, and the expansion of the welfare state has declined with the developed nations following the influence on the Republican Party by the conservatives in the 1970s. It has resulted to the low-income earners paying more taxes while the high-income earners are paying less through the regressive tax laws. Anti- labor policies have been passed that have barred the trade unions from bargaining for wage increments of their ...