Wages,+Taxes,+and+Wealth+Disparity+-+Jenny+Y.,+Janet,+Ryan,+and+Alex

Wages, Taxes, & Wealth Disparity 

So what is the issue?

Trusts took full advantage of giving low wages to workers as many struggled to provide their families with the basic essentials. So, there were many riots that had occurred in protest for better conditions and wages for the working class. However, workers were always in the fear of being cut as there were a surplus number of low-wage workers that were always available in the market to hire. Thus, factories easily threatened their workers to work without complaint. The primary reason for the surplus number of low-wage workers was because of the lack of proper education given to the lower class. There was a small number of skilled while there was a surplus of unskilled.
 * Wages**[[image:Trusts.jpg width="173" height="228" align="right"]]

The government failed to remain objective and fair in their matters as they imposed unfair taxation amongst the people. Both the poor and rich classes had to pay an equal amount of tax, further placing the lower-class citizens at a disadvantage against the higher-class. The government placed a high tariff on the lower class that the higher class citizens were able to avoid paying through lobbying and bribery.
 * Taxes**

Wealth disparity was a prevalent issue during this time due to the fact that monopolies and trusts had full power in the market and so, they imposed unfair prices and low-wages to the working class peasants. This created a near permanent gap between the rich and the poor. As the lower class workers were forced into cruel conditions in factories, their treatment was degraded by owners; they had to work as though they owned the hands of a machine. This also set forth mentally that the lower-class will always remain as the lower class, allowing little space and freedom for the poor-class to actual improve economy wise. The corporations took complete advantage of low-pay workers as they later used cheap child-labor as another source for their factories. Complete dehumanization was displayed throughout. Another factor that lead to this wide gap was unfair taxation. Both the rich and poor classes were required to pay an equal percentage of tax when in fact the rich people should be contributing more. Much of these factors resulted in the sharp class distinctions that were plain to see by the time the progressive activists started to take action.
 * [[image:Riis.jpg width="258" height="191" align="left"]]Wealth Disparity**

Some Analysis The federal government can set minimal yet acceptable working conditions for factories by enforcing safety regulations. They can also increase the power and authority of the National Labor Union (NLU) to inspect workplaces and enforce standards for factory conditions. The government can set up programs to benefit unskilled laborers, which primarily consists of minority groups that are viewed as disposable workers by corporate businesses. Also, setting minimum wages to let the poor sustain their livings would help tremendously. Tax codes should be progressive, and implementations of public schools for African-Americans should also be present as services to the general public. However, so far, short-term solutions were listed that would help fighting the wages, taxes, and wealth disparity problems, but not a complete cure. Education would be the long term remedy, since it would create more skilled workers and, thus, more middle class people.

Unfortunately, not all the policies we have mentioned can pass. In order to build more public schools, the government needs money which is tax. As a result, we cannot decrease taxes while establishing more schools. This means that we have to make a choice between taxes and education. The minimum wage solution can cover problems with taxes, while there is no "alternate solution" for the education issue. Decreasing tax is only a short term solution, not a permanent one thus, sacrificing that would be the better choice.

Namoo Thinktank's Solutions

Currently, the federal government uses a tariff on imports as the primary means to financing government operations and organizations. These tariffs contribute to a dearth of fiscal welfare because they benefit only domestic companies who do not have to worry about competition from overseas companies. As the cost of overseas imports increases due to tariffs, large corporations can exercise corrupt practices and exploit the country’s consumers. The average factory worker thus has a higher cost of living as a result of tariffs. Eliminating these tariffs would benefit America’s lower classes by introducing more competition and lowering consumer prices. Furthermore, when tariffs are lowered, America will become a more appealing market, which will result in the development of competition overseas while the presence of monopolies and trusts falter.
 * Step 1: Lower the tariff!**

Most of America’s poor are unskilled laborers who find themselves trapped in a system of poverty because they lack the skills or support to negotiate for better employment or conditions. Though a lot has been said about America’s social mobility and the “rags-to-riches” success of men like Andrew Carnegie, for many Americans this is impossible without government help.
 * [[image:soakingriches21-224x300.jpg align="left"]]Step 2: Institute a progressive income tax**

To date, America has had no consistent federal income tax. In order to maintain economic stability, our solution to the issue of wealth disparity is primarily causal to the relationship between the government and large businesses. Therefore, we must have the national government institute a graduated tax code that progressively augments in accordance to the gross income of an individual. Instituting a progressive or graduated income tax would give the government an opportunity to redistribute wealth from the rich to the poor by providing much needed social programs to ensure a minimum standard of living for the underprivileged.

It is imperative that the tax rate is reasonable, as the wealthier class needs to preserve their incentive to work for an amount larger than that of a lower tier worker after audits are performed. In order to ensure the income tax benefits those most in need, we suggest the following tax rates. Households earning less than $1500 per year should be exempted; households earning $1500-$4000 taxed at 5%, $4000-$6000 taxed at 10%, $6000-$10000 taxed at 15%, $10000-$20000 taxed at 20%, $20000-$50000 taxed at 30%, $50000 or more taxed at 35%. We believe these rates ensure the government has the revenue necessary without unduly punishing honest successful businessmen in America.

**Step 3: Use the income tax to provide social programs for unskilled laborers** A progressive tax rate of this nature will generate more revenue than the tariffs, so the government will have an increased budget to provide services. The government’s first priority should be to mandate universal high school education for all American children. Families in the first tier tax bracket should receive subsidies for their child’s meals, books, and clothing to ensure students do not leave their studies to go to work.

A second priority should be extending medical care to all Americans. With the extra income tax revenue the government should establish free clinics to provide basic care to laborers and other poor neighborhoods. Since individuals in the top bracket have less need of public services but pay more taxes, this income tax would in essence redistribute national wealth by subsidizing some of the basic needs of the lower classes, such as education and medical care.

Beyond the basic programs of education and medical care already discussed, we believe programs targeting unskilled laborers to provide them with better training and poor communities to encourage entrepreneurship would further close the gap between the wealthy and the poverty stricken.

An income tax would also provide a framework for government to give businesses incentive to follow best practice in establishing working hours, pay rates and safety conditions. Businesses who invest in making the workplace safer could be eligible for tax deductions, while rebates or subsidies could be used as an incentive to foster on-the-job training programs for unskilled laborers.
 * Step 4: Provide exemptions as an incentive for businesses to help laborers**

As a final note, for public officials to have incentive to care for the poorest Americans, government needs to keep its operations discrete from that of the big businesses with the intention of monitoring political extortion. Extending the right to vote to women – who are disproportionately employed as unskilled laborers – politicians would have to consider their interests to successfully run for election. The elimination of political appointments, institution of direct federal elections, and cap of monetary donations from corporations would also recede the corrupt politicians and stifle corrupt politicians hoping to staying power. We also endorse trade unions as key organizations that enable laborers to negotiate as a group and vote as a block with political power on par with large corporations.

Johnston, Jim. "A Brief History of America’s Quite Progressive Income Tax." //Somewhat Reasonable//. N.p., n.d. Web. 5 Feb. 2012. .
 * Bibliography**

"ObamaJobs: Uncle Sam's Hiring Hall." //Public Opinion, Polls and Discussion on SodaHead//. N.p., n.d. Web. 5 Feb. 2012.

"Our Documents - 16th Amendment to the U.S. Constitution: Federal Income Tax (1913)." //Welcome to OurDocuments.gov//. N.p., n.d. Web. 5 Feb. 2012. .

"Poverty on Top of Depression « Modern American History." //Blogs@Baruch//. N.p., n.d. Web. 5 Feb. 2012. .

Riis, Jacob. "Boys on the Street" 1909.