Progressive Income Tax to Solve Income Inequality Essay

Addressing Income Inequality: Evaluating and Advocating Policy SolutionsThis policy proposal should be submitted to the House Committee on Ways and Means, as this committee is responsible for overseeing tax policy and revenue-raising measures in the United States. The proposal could also be presented to the Senate Committee on Finance, which has jurisdiction over tax policy and related matters at the federal level.I. IntroductionIncome inequality has been a growing concern in the United States, with the rich getting richer while the middle and lower classes struggle to maintain their standard of living. This paper will identify the issue of income inequality and discuss the problems surrounding it, drawing upon a minimum of four academic/legitimate sources from current events-related or scholarly journals.II. Problem StatementIncome inequality has widened over the past few decades, leading to a more unequal society with a significant wealth gap. This has resulted in various social and economic problems, including reduced social mobility, increased poverty, and negative impacts on economic growth (Piketty, 2014; Stiglitz, 2012).III. Potential SolutionsUniversal Basic Income (UBI)One proposed solution to income inequality is the implementation of a universal basic income (UBI), which would provide a guaranteed income to every citizen regardless of their employment status (Yang, 2018). UBI would help reduce poverty and improve financial security for low-income individuals, and it could potentially stimulate economic growth by increasing consumer spending (Raventos, 2007).Progressive TaxationAnother potential solution to income inequality is to implement a more progressive taxation system, which would require higher-income earners to pay a larger share of their income in taxes (Saez & Zucman, 2019). This would help redistribute wealth and potentially reduce the gap between the rich and the poor, providing more resources for social programs and investments in public goods (Piketty, Saez, & Stantcheva, 2014).IV. Comparison of SolutionsUBIStrengthsUBI provides financial security for all citizens, reducing poverty and promoting social mobility (Yang, 2018). It ensures that everyone has a basic income, and it can help alleviate financial stress and provide a safety net for those who are struggling to make ends meet. Additionally, UBI may stimulate economic growth by increasing consumer spending (Raventos, 2007). When people have more money to spend, they are more likely to purchase goods and services, which in turn can boost the economy.WeaknessesHowever, there are several weaknesses associated with UBI. One significant concern is the high…

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…and families. Plus, progressive taxation provides more funding for social programs and public goods. It allows for investments in essential public services such as education, healthcare, and infrastructure. These investments benefit all citizens and can have a long-term positive impact on reducing income inequality by promoting social mobility and economic opportunity.In contrast, the high implementation costs of UBI make it a less attractive option for addressing income inequality. Also, the potential inflationary effects of UBI could further exacerbate economic inequality by disproportionately affecting low-income households, which are more vulnerable to rising prices.Overall, it can reasonably be argued that the idea of progressive taxation is more politically feasible than UBI, as it is less likely to face significant opposition from interest groups and the public.VI. ConclusionIn conclusion, this paper has identified the issue of income inequality and discussed the problems surrounding it. Two potential solutions, universal basic income and progressive taxation, were compared and contrasted, taking into consideration the obstacles posed by interest groups, the media, public opinion, federalism, the bureaucracy, and separation of powers. Ultimately, progressive taxation was advocated as the better policy response to address income inequality, given its direct impact on the…