What the richest people in the world do with their increasing income and wealth, what they can give back to society. Are alternative options to this controversial idea the better way and, if so, in which cases?
The Wealth Gap Dilemma
The hunger games have already begun shaving up the opulent from everybody else faster and faster.
In fact, research shows that the wealth of Australia’s richest 10% is now increasing at a much quicker rate than in the bottom 60%. The bottom 90% own 1/4 of the wealthists and nearly half the share goes to top 10 % of all households.
Increasingly, the focus of this attention is on the stark inequality that diminishes opportunities for those who are worse off to achieve success and fulfil potential. The out-of-control concentration of economic power and resources in the hands of a few at the top is a perfect recipe for social unrest and it fundamentally shreds all notions we hold dear for what makes equitable society.
The wealth Tax: The cure all?
There is actually growing enthusiasm around the idea of a wealth tax. It is a simple and straightforward concept: excerpt a tiny percentage of the enormous wealth the 1% enjoy, and assist those who have less through better social services.
The first is a type of wealth tax that would levy an annual charge on the net value of an individual’s wealth (assets less liabilities). It is not like income tax and shows a person’s total financial power.
However, supporters feel that the richest among us should pay more with what they say is justification being means. But its detractors say it is an unfair penalty for achievement, could stymie innovation and drive wealthy investors away.
Conclusion
The implementation of a wealth tax though, presents significant challenges, however in the face an issue so troubling as extreme wealth inequality it seems there may be no other alternative then to address our country’s systemic injustice with drastic measures. Reforming inheritance taxes or property taxation on the other hand could also be additionally considered which would help to redress the balance. At last, the broader public is warming to such ideas, and as a result governments might need to do some jiggling around to achieve a more equitable tax environment for all.
