The Rich and Poor Divide Isn’t Good for America
There is a crisis in America, relative to the widening income gaps between the rich, the middle class, and the poor. This ultimately impacts consumer spending.
In the fiscal cliff talks, President Obama decided to compromise on the Bush-era tax cuts after raising income taxes on those individuals earning in excess of $400,000 annually and over $450,000 for married couples. These groups account for roughly the top one percent of income earners, according to the Tax Policy Center. (Source: “Fiscal Cliff Deal Will Raise Taxes On 77 Percent Of Americans: Tax Policy Center Analysis,” Huffington Post via Associated Press, January 2, 2013.)
The World Economic Forum suggested the widening of the income gap will have a global impact. (Source: “Income disparity, debt lead risk list,” Yahoo! Finance via Associated Press, January 8, 2012.)
The failure to achieve tax increases for all income earners making over $250,000 was a disappointment to President Obama, and it further increases the widening gap between middle-class America and the top one percent. With the income gap between the rich and poor widening, this is becoming more of a major issue that will need to be addressed, as it impacts consumer spending.