What’s the Government’s Role?
The U.S. government is already working to address income inequality and poverty. Some people believe that the government should be doing more, some believe it should be doing less, and some feel that the current role is about right.
Here are some of the policies that the government has in place to address income inequality and assist poor households.
Progressive Income Tax
A progressive income tax taxes people with higher incomes at higher rates. In the United States, federal tax rates start at about 10 percent and reach a high of 35 percent, with four intermediate brackets. Except for transfer payments and public assistance programs, all U.S. citizens receive the same basic federal services in terms of defense, ...