Parts of America’s society are marginalized based on income. There are millions that are poor, but not necessarily homeless. The government has many programs to assist the poor but many don’t get all the benefits that they are qualified for. You have to be “worth” the aid because there are people that would free ride the system, Meaning if the welfare gives free checks to those who don’t try to help themselves, then they might quit their jobs to get the free check. The maximum wage for poverty is $1,400 and there are 12.5% people below it. What makes it worst s the tax rates in America. Tax is the money that is forced to pay to the government in order for the government to provide services to the public. Many can debate on that because there are others who believe taxes is a method that takes money from the poor to make the rich richer.
There are different types of taxes. Flat tax, when everyone pays the same tax percentage. Regressive tax, when the poor people pay higher tax and the rich pay lower and Progressive tax where the rich pay higher taxes than the poor. The two examples of the tax examples are the marginal tax system, where the rich pay higher taxes than the poor depending on their income. Another example is effective tax, when you add up all the taxes that you paid through out the year and divide it by your original tax percentage. The wealthy would have a higher effective tax rate. Our system has a “mixed economy” where it shares capitalism and Socialism. The government organizes public assistance such as parks, libraries, welfare, schools, etc. While capitalism controls the markets, such as what is being sold and brought. Being that our system has a mixed economy, people are able to have their own hustle with out the government getting involved. Contrasting to Denmark, they have a “Social Democracy” Which means all of the services they need, will be guaranteed to them through taxes. Also instead of paying insurance, school etc, taxes cover it. Those who live in Denmark also get paid to go to school. They also have somewhat a mixed economy because there are people that have their own hustle.
From having knowledge of social welfare from New York and Denmark, We should start heading towards a Social Democracy. Everyone will be able to benefit and some may not have the point of view that only the wealthy gets it all. If we have to pay higher taxes, I’m sure people won’t mind only if everyone can benefit off of it. People feel gypped off because the poor is paying high tax rates that they can barely afford and not getting all the benefits they need. Now, moving into a social democracy is not noticeable, the people do not trust the government anymore. With out trust, Nothing can be done and negotiable.
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