INCOME INEQUALITY
In both times of economic growth and decline, the benefits or costs have not been equitably realized by all socioeconomic groups. Nor has our system provided a secure social safety net for those who are truly in need.
Income Inequality
Solutions and Key Components
▶ Tax corporations and individuals equitably
• Set corporate tax rates at globally competitive levels.
• Implement flatter tax rates on individuals and a progressive tax on wealth and estates starting at annual net worth of $50 million.
• Tax capital gains and dividends the same as earned income.
▶ Make the tax code simple and fair
• Eliminate all tax preferences except for incentives towards retirement savings, interest on primary residence mortgages, and corporate investments in basic research.
▶ Increase the federal minimum wage and index it to prevent loss of purchasing power for workers
• Increase federal minimum wage to $10.10 per hour to lift 4.6 million Americans out of poverty.
• Index minimum wage to inflation to keep pace with the cost of living and prevent loss of purchasing power over time.
▶ Provide a universal basic income
• Restructure the Earned Income Tax Credit eliminate phase out, increase the payout size, increase distribution from once per year to bi-weekly, and pay on an individual basis regardless of marriage status for adults and children.
▶ Reform Social Security
• Eliminate the cap on taxable earnings.
• Increase benefits for most recipients and maintain current benefits for the wealthy.
• Allow workers to invest some of their contributions in individual retirement accounts.