Income Inequality and Regressive Taxation in the United States
Interdisciplinary J. Econ. & Bus. Law, vol. 4, Issue 3, pp. 8-28 (2015)
21 Pages Posted: 17 Jun 2015
In recent decades the United States has been plagued by increasing levels of economic inequality. Such increase in economic inequality was posited to relate to excess compensation paid to corporate executives (Piketty & Saez, 2003). This artilce asserts that, to the contrary, the observed increase in economic inequality is due, in part, to regressive tax policies in the United States. Income inequality is further shown to have been significantly underreported by the failure to account for unrealized income on capital assets held by the wealthy.
JEL Classification: H20, K34
Suggested Citation: Suggested Citation