The Current Widening Income Inequality

970 WordsMay 1, 20154 Pages
The current widening income inequality is due to the substantial income disparity between the top and bottom workers in the U.S. economy. General decline in wage endangered the standard of living for low income family as they struggle with a tightened budget. In order to battle income inequality, policy makers must raise the income of the working poor by expanding tax credit program and increase its effectiveness through major modification. Currently, there is widening inequality in the United States due to the savage income gap between those at the top of the income distribution and those at the bottom. According to the Congressional Budget office 2012 report, from 1979 to 2012 the top five percent of U.S. households had a real income increase of 74.9%, where over the same period the bottom 20 percent had a real income decrease of 12.1%.1 Conversely, according to the Economics Policy Institute 2014 “Rising America’s Pay” report by Josh Bivens et al, over the same time span the productivity of a typical American worker had doubled.2 In other words, despite the increase in productivity the bottom working class continues to live under income reduction. The situation is even more devastating for worker who have exceeded the stingy federal poverty limit and deemed ineligible for social assistance or only partially subsidized from income tax credit. My proposal is to raise the income of the working poor through tax credit subsidy. The end goal of my proposal is to enhance the

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