Income Inequality in USA
The US has experienced a high rate of income inequality among its citizens. The income inequality problem is worsening day by day. The government has shied away from addressing the issue of income inequality, and this may have influenced the results of the midterm elections held in the US. The Americans have been affected by this issue, and have given up on the current government. The earnings of 90% of Americans on the lower end of the income level dropped while that of the upper 10% of Americans rose in the period 2010 to 2013 (Rattner, 2014).
Income inequality in the US is experienced by a majority of the Americans. It is worse for the low income earners because their income drop with a larger percentage after inflation adjustment compared to the high income earners (Rattner, 2014). Earnings are adjusted because of the inflation experienced in the country. Inflation is a state where there is a large supply of money in the economy while the products are few.
The income inequality issue is important because it affects the society. The issue should be addressed so as to determine the solutions to this problem. The government programs are seen as main contributors to the large disparity of income levels among its citizens. The high income earners in the US are subjected to low tax rates that do not affect their income substantially. The end result is income inequality when compared to the low income earners. The Americans expect the government to take action in correcting this large income disparity, but the government tends to ignore the issue (Rattner, 2014).
I agree with the author that the low tax rates charged by the government are major contributors to the issue of income inequality. The high income earners pay very low taxes such that the burden of tax is heavier on the low income earners. The margin of the tax rate paid by the high income earners and the low income earners is very small.
References
Rattner Steven. Inequality, Unbelievably, Gets Worse. The New York Times. 2014. Retrieved from: http://www.nytimes.com/2014/11/17/opinion/inequality-unbelievably-gets-worse.html?_r=0
