Question

Wealth is the total value of what a person owns, minus any debt he or she has. In the United States, the wealth gap has reached new heights and is still increasing. Identify whether or not these are causes for the widening wealth gap in the United States.

Answer 1

Answer:

1. shifts in the U.S. tax code
2. increase in debt
3. inheritance as a generational transference of wealth

Explanation:

1. The Tax Cuts and Jobs Act of 2017 lowered the tax rates f.or everyone, but wealthy households and corporations got the best deal.
2. The national debt has been steadily increasing during the last 2 decades, and someone will have to pay for it.
3. Before you could expect to be wealthier than your parents, now for the first time in Us history that is not he case.

Income inequality has increased a lot in the last two decades and the gap keeps widening. The average income for 90% of US households is $34,074, while the average income for the top 10% is $312,536. And if you go a little higher, top 1%'s average income is $1,363,977 and top 0.1%'s average income is $6,747,439.