Inequality paychecks or funding to pay for government spending.

                          Inequality
Gap

 

                        Everyone’s dream in
life is to live the lavish lifestyle. We see in the media people spending
billions of dollars on nice cars, clothes, and homes. But everyone’s dream is
terminated when we realize that acquiring that much money with little to no
effort is close to impossible. But some people that do
acquire the dream is what most of us strive for, but if you are in poverty it
is close to impossible to get out of it. A lot of families come to
America to live the American dream because they think the are going to be
promised wealth and fortune, but they are just working harder to close the wealth
gap. Many families try to work long hours for minimum pay to earn enough money
to find themselves still in the low class.  The lower class earning enough money to strive
off of is slim. The inequality gap still exists because the government gives
the poor a disadvantage on how people use their money through taxes, minimum wages,
and education.

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                       The government
automatically takes taxes out of individuals or corporations paychecks or
funding to pay for government spending. But, families that make low income pay
a higher percentage in taxes even though they barely make enough money to pay
for the all taxes and still provide for their families. But the 1 percent do
not fully contribute to taxes, they make over millions but have a lower
percentage of their input for taxes. People that also have a disadvantage too
still have to pay for taxes, for example, “The truth is, unauthorized immigrants pay
approximately 8 percent of their income in state and local taxes, a higher
percentage than wealthier people pay (because state and local taxes are, on the
whole, regressive). About 6 million unauthorized immigrants file income taxes
each year; and undocumented immigrants are also paying about $15 billion in
Social Security taxes, though these immigrants are not eligible for Social
Security benefits.” So, immigrants still must pay a percentage of taxes,
but the 1 percent are still paying lower than they are. The riches people have
found certain loopholes to get out of paying for taxes. For example, “Some of the ultra-rich are able
to take advantage of loopholes so they pay almost nothing in inheritance taxes.
Others take advantage of the fact that the exemption levels for the estate tax
are very high — $5.3 million per individual ($10.6 million per couple). $3.5
million for an individual ($7 million for a couple) taxed at a 45% top rate.”  (add more)

Close the Wall Street carried interest loophole. Wealthy private
equity managers use a loophole to pay the lower 23.8% capital gains tax rate on
the compensation they receive for managing other people’s money. We should
close this loophole so that they pay the same rate as others at their income
level who receive their compensation as salary. This would raise $17 billion
over 10 years.

                        

                             Minimum wages are
the lowest amount to pay an employee that cannot be lower to prevent any
workers from being paid any unjustly amount of payment. Raising the minimum
wage can be helpful to some families to get them out of poverty and can start
to close the inequality gap. It is known that families that earn minimum wage cannot
survive off the little money they make. People spend hours at work and receive
little money that they must pay off taxes, bills, etc. that they do not have
money left to feed or clothe their own families. In 2015, Bernie Sanders proposed
to legislation to raise minimum wages to $15 an hour, which got thousands of
people to protest on this issue to make the law pass.  Bernie Sanders said, “It is a national disgrace that millions of
full-time workers are living in poverty and millions more are forced to work
two or three jobs just to pay their bills,” he said. “A job must lift workers
out of poverty, not keep them in it. The current federal minimum wage of $7.25
an hour is a starvation wage and must be raised to a living wage.” Only
recently the minimum wages went up to $10 dollars an hour from just $7.25 that
was raised in 2009. It is impossible to live if off $7 and still take care of
your family. The minimum wage was only before 2009 was only $6 too, so the
federal minimum wage rate took seven years before it went up to $10. The
minimum wage increase can employee much more people and raise the economy
because the low rate of minimum wage can be only of the cause of the wage
inequality gap. For instance, “Increasing
the minimum wage would directly benefit 62 million workers who currently make
less than $15 an hour, including over half of African-American workers and
close to 60 percent of Latino workers. If the minimum wage had kept up with
productivity and inflation since 1968, it would be more than $26 an hour today.”

              In the documentary “Park Avenue: Money, Power and the American
Dream” directed by Alex Gibney, he references the popular game Monopoly, that
to win the game you must watch your moves and your money to earn more money than
your opponents. But when the game is rigged, and one player has more advantage
than you to earn more money than everyone else than it is unfair.  When billionaires are making so much money to
only pay a small percentage of taxes then it is not luck but pure greed. Rich
people are finding loop holes to not pay for income taxes, even though they
make the most money. For example, Alex Gibney says, “A perfect example of the influence that a small group
of billionaires can have in the government is something in the tax code called
carried interest provision. It allows hedge funds and private equity managers like,
Steve Schwarzman, to pay a 15% tax rate on their income…” Explaining that
to become and stay rich does not take intelligence of any sorts, but have to mastermind
the game of wealth. Yet, rich people still point the finger that low income families
do not pay for income taxes even though a majority of federal taxes. So, the
way for anyone to not end up in poverty is to of course either get a job or to
have a great education.