Government policy making rich richer, poor poorer

United States, 6th September: Rich Americans are becoming richer while the poor are becoming poorer due to the policies of the US government.

United States, 6th September: Rich Americans are becoming richer while the poor are becoming poorer due to the policies of the US government.

The state governments are helping rich keep their income tax free while the poor are left to fend for them.
Let us take a look at the recent policies aiding those at higher rung of  income ladder leaving the poor more vulnerable—
High earning professionals offered protectionism—While American economy continues to reel under economic crisis, doctors seem to be taking home a fat income packet, thereby becoming among the highest income earners the world over. This is despite the fact that majority of Americans are engaged in low-earning jobs.
And an obvious reason behind it is that the American Medical Association has asked, from time to time, the political parties to curb the number of foreign physicians from practicing in the US. no wonder, the current figures show a decline of almost fifty percent in the number of foreign studying medical courses in the US.
According to co-director of Center for Economic and Policy Research, Dean Baker, the doctors in the US are getting double as compared to the pay packets earned by their counterparts in Canada and Western Europe. No wonder, the high incomes paid by the US government is being born by the rest of Americans.
Tax deductions on home mortgage for lucky Americans—Here another benefit being offered to Americans on upper strata of society. The government offers tax deductions on mortgage for buying a new house, or any renovations, repair on the homes for rich Americans. Since, the richer Americans have higher income taxes as well as bigger mortgages, they enjoy higher tax deductions on mortgage interest.
According to statistics, homeowners in the US with an income of $30,000 get almost negligible tax deductions while those earning anything between $40,000 and $75,000 get a much larger share. The worst are those without any income for purchasing a house or those living in a rented house.

Bonds excluded from sales tax, not bread—That’s the logic being followed by the US government. While rich continue to be favored by getting exemptions on stocks from sales tax, the impoverished have to shell out sales tax even for consuming bread. No wonder, sales tax are discriminating the low-income Americans.
The US does not have any financial transaction tax and it’s the only nation among the seven fastest growing stock markets doing so, asserts, an economics professor at University of Massachusetts-Amherst, Robert Pollin.

If economies like South Korea, China and so on can grow even by imposing taxes on financial transactions, why can’t the US economy grow, argues Polliin.

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