US Public Financial and Fiscal Policies - 1858 Words

The US has the largest single national economy in the world. As it is a democratic society one might assume that the wealth is equally distributed amongst its people. In reality the nation is severely segregated in terms of who has the wealth and all the benefits associated with it. A central aspect of this unequal distribution results from Government Fiscal policies. This is especially true of Tax Revenue, with all the possible breaks, exemptions and loopholes that currently exist. The major benefactor of the current Tax system is what is commonly called the â€Å"1%†. This refers to the one percent of the population who control approximately 40% of the country’s wealth. Given this inequality it is imperative to consider alternative Economic†¦show more content†¦Considering that the average annual income in the U.S. is $51,017 , the benefits for the average American in ability to own stock is fairly low. The theory behind investing and this â€Å"tax break † is that it promotes investing in companies, which in turn will create jobs. It surely keeps in a sense money into the economy, but in reality this investment chain is a good way to take the income from salary and earn it back in this manner at a lower tax percentage. Lastly the third issue of concern for this paper in terms of the partition of financial situation in America is the Minimum Wage. The current federal minimum wage is $7.25 , leaving a full time employee at minimum wage earning a yearly salary of around $14,000. The poverty threshold for a family of four is $23,850 , leaving the current wage non-beneficial in providing a prosperous economy for the country. President Obama has been appealing to congress to â€Å"give America a raise† in wanting to raise the minimum to $10.10 federally, though it wouldn’t necessarily bring an individuals income greater then the poverty threshold, there would most definitely be an amelioration, but the need once agai n would be for more jobs which would employ the citizens. Companies get tax breaks for shipping their jobs overseas for manufacturing and service centers, and in turn eliminating the possibility of employing fromShow MoreRelatedThe United States National Debt Essay823 Words   |  4 Pageswhat the national debt is, how big it is, and what it has to do with us. The United States national debt can be divided into two major parts: public debt and intra-governmental holdings. Public debt, which comes from securities and bonds issued by the United States Treasury, is responsible for over 60 percent of the debt (â€Å"Debt Position and Activity Report† 1). 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