‘Richest Are Leaving Even the Rich Far Behind’ _ Justin Chou E.C.

David Johnson’s ‘Richest Are Leaving Even the Rich Far Behind’ discusses the extent to which economic inequality continues to diverge even among the top 1% of earners. The author states that the top 0.01% (thousandths) of earners benefits the most from tax cuts and loopholes. These top earners rake in over one million dollars but pay the same rate as those earning $70,000. The widening income distribution illustrates a disturbing trend where the ultra-rich leave even the rich behind.

Provisions to ensure the rich paid taxes, made my lawmakers in the past, have not been adjusted for inflation. These outdated rules mean that our tax system does not fit with today’s economy. Lawmakers have chosen to turn a blind eye to this outdates tax system. They believe that top earners will spend and reinvest their money. Those who make this argument forget that we now live in a global market economy. Investments may not come back to the United States; there is also no guarantee that they will spend it. Warren Buffett has been a longtime advocate of changing the tax codes. He one stated that he pays a lower percentage in taxes than his housecleaner. Buffett also argued that not taxing the rich could result in decreased mobility and hoarding of resources. This means that we could see a potential hegemony within America.

Some may argue that America’s economy is rising as a whole. Who cares if the rich are getting richer if everybody is doing better? Those who make this argument forget that equality is a fundamental tenant of happiness. Mobility and happiness are limited when the ultra-rich leave everybody behind.