Income Inequality Review this statement.

Income Inequality

Review this statement. “A county with more of poor neighborhoods usually earn less tax money and would have less money to support a public school comparing to a county with no poor neighborhoods. Students from a public school that receives more supporting money are generally perform better than students from a public school that receives less supporting money. Therefore, the poor will destine to be poorer and the rich will destine to be richer.” Is this statement true in our nowadays economy? Why or why not? How does our tax system help reduce the distant between the upper class and the lower class?

It is clear that our system of allocation of resources is efficient yet not “equitable” or “fair.”  From our textbook and the study/review of the above statement you have seen that governments have a political and economic role and among those issues addressed by government is income inequality.  There are widely differing opinions as to the causes of inequality and even more opinions on how to address the issue. Should our tax system be changed? Why or Why not? To what extent do you think that income inequality is the result of choices made by individuals?  Should they and only they be held responsible for their situation and their choices? Is it fair that a person who earns 45 million dollars (from capital investment) a year only pay 15% of his earning as tax while a librarian who earns 36,000 dollars a year pay 13% of her earning as tax? Should our government do more or less regarding the income inequality in the US? Why or Why not?

You are more than welcome to add many other aspects, data, facts, and analysis to the discussion. 

REMEMBER: This is NOT a business ethic class or a religious study group or a personal story time. Use economics theories when you answer questions and argue your case. 

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