Reforming Policies That Help the Wealthy Save and Forget the Poor
For some reason, many of America’s government policies that are aimed at helping Americans save money are disproportionately aimed at the wealthy. According to the Urban Institute, correcting this trend could be a major step toward solving the racial wealth gap. The institute suggests, “Reforming government policies that encourage savings but disproportionately benefit the already wealthy and families with high incomes, like the home mortgage interest deduction. Automatic savings vehicles also might help lower-income and lower-wealth families start saving.”
Correct Tax Codes That Give Enormous Breaks to the Wealthy
When it comes time to handing out tax breaks, the government yet again focuses on the wealthy and leaves low-income families without many options to make ends meet. A report from Bloomberg Business revealed that in 2010 a loophole in the tax code allowed America’s wealthiest to avoid a total $100 billion in estate and gift taxes since 2000. It also revealed that while the country’s richest 400 households took home more than 15 percent of all capital gains, an amount that soars beyond the $300 million mark for each household, they still paid the same tax rate as a worker making roughly $80,000 a year.
