Read on for a summary of factors contributing to losses by middle and low income groups, and a tax policy that counters the growing inequality.
- Science and math literacy is high for 55-65-year olds. However, Americans in the 16-24 year old bracket lag behind other industrialized countries with respect to science and math skills. So we lose out in terms of high-skill jobs.
- US companies distribute less of their funds to middle and lower income groups and more to well-paid executives. US minimum wage is lower.
- Other governments are more aggressive in implementing tax policies that benefit lower and middle income groups.
Here is a tax plan that could mitigate the inequality - link corporate taxes to the discrepancy between worker wage and CEO compensation.