In the State of the Union address, President Obama discussed his focus on income inequality. The gap between the rich and poor has been
widening, as the middle class population is shrinking. President Obama is
worried that this trend could damage the overall economy. His focus is on
middle class economics. The goal is to help working families’ feel more secure.
To achieve this goal there is talk about raising the taxes of the rich to
support the poor. President Obama wants “tax reforms that protects and
strengthens the middle class, lowers rates, simplifies the system, levels the
playing field, and eliminates unfair and inefficient loopholes.” Republicans believe
this will hurt investment and jobs. Instead they suggest cutting taxes will
benefit the economy. Republicans recommend other policies that will help with
income inequality, other than raising taxes.
1 comment:
Increasing taxes on the rich does not necessarily mean that they will spend less. In fact, they will spend the same amount because they can. But increasing the capital gains tax, to me, is unfair and promotes spending rather than saving and I think it is important that we do save right now.
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