publicidad
Donald Trump delivering economic policy speech at the Detroit Economic Club, August 8, 2016

Is the United States headed the way of Latin America in income inequality?

Is the United States headed the way of Latin America in income inequality?

Donald Trump's tax plan appears designed to make income inequality much worse.

Donald Trump delivering economic policy speech at the Detroit Economic C...
Donald Trump delivering economic policy speech at the Detroit Economic Club, August 8, 2016

Income inequality has long been recognized as a serious problem in Latin America, the region of the world where it is the worst. Inequality makes sustainable economic growth, reducing poverty and social cohesion all much more difficult to achieve. And it provides an unspoken justification for crime as a means for the poor to get ahead and to redistribute wealth from the rich.

Of the 35 members in the Organization for Economic Cooperation and Development, the rich countries club, income inequality is the worst in Chile, Mexico and Turkey with the U.S. not far behind at number four. When it comes to accumulated wealth, the United States is the most unequal, rich country according to Fortune magazine.

publicidad

Inequality in the U.S. has reached levels that have not been seen since at least the 19 th century and reversing this situation may be impossible. In 2014, the economist, Thomas Piketty wrote in the Financial Times “US inequality may now be so sharp, and the political process so tightly captured by top earners, that necessary reforms will not happen.”

For proof of Piketty’s point one need look only as far as the Republican Party, which seems dedicated to making income inequality worse in America. It is, of course, not described that way. The proposals the party advocates, that will make the problem even greater, are always described as programs to create jobs. Perhaps that’s true if one only looks at the number of valet parking attendants.

During the campaign for the Republican nomination nearly all of the 17 aspiring presidential contenders advocated a flat income tax, or worse, a consumption tax, which is a glorified sales tax. All of these proposals would have exploded the deficit and made income inequality worse.

But that seems to be consistent with the practice of the party that nonetheless advertises itself as the one that is fiscally responsible. President Reagan cut taxes and tripled the national debt. President George W. Bush cut taxes, 38 percent of which went to the richest one percent, and doubled the national debt. And no, the latter did not create jobs and set off an economic boom.

But now we have a Republican nominee who rolled out his economic plan in Detroit recently. Words, when uttered by Donald Trump, seem to lose their meaning as he defines them differently from one day to the next depending on the audience and the occasion. His plan is vague therefore, but contained enough specifics to make clear that it is designed to make income inequality much worse.

publicidad

He proposed cutting the number of income tax brackets from seven to three. The problem with the tax code is not the number of brackets. It is the number of deductions, exemptions, loopholes and attempts at social engineering that have made it thicker than a Manhattan phone book. While the exact impact is unclear because of a lack of details, he prosed the following. The marginal tax rate on those making the most income, around a million dollars a year and above, would be cut from 40 percent to 33 percent. On the other hand, those working families struggling to get by on a low five figure income would have their rate raised from ten percent to 12 percent.

He also wants to eliminate completely the inheritance tax, which affects only those two tenths of one percent of estates that exceed $11 million. Since he owes his fortune to inherited wealth, this should not be a surprise. These, and other changes, will cost trillions of dollars, unless of course one believes the fairy tale about all the economic growth and jobs that will be created. The impact of this plan does not even require a back-of-the-napkin calculation and one conservative commentator disliked the overall package so much he referred to it as evil.

Warren Buffett, the billionaire businessman from Omaha, has written about the unfairness of a tax system that allows him to pay a lower tax rate than his secretary. It is clear Trump wants to make that system even more unfair without reducing its complexity. So if you like the income inequality of Latin America, you will love a Trump administration.

publicidad


publicidad
Contenidos Relacionados
07 nov, 2017 | 01:10 PM
Puerto Rico Rises Up
publicidad
Through tears, Joaquín Ramírez recalls the minutes after a gunman entered a Baptist church in Sutherland Springs, Texas, and fired at everyone in his path.
When Rodrigo Duterte was sworn in as Philippines’ president in June 2016, he declared a war on drug traffickers and users. Since then, Human Rights groups estimate more than 12,000 people have been killed in this offensive they call "a war on the poor." Univision News traveled to Manila and witnessed this conflict first hand.
They grew up in Chicago and their husbands, the Flores twins (aka ‘Los Mellizos’), worked for the Sinaloa cartel. The twins later became DEA informants in Mexico who helped bring down El Chapo Guzman. They have written a book, Cartel Wives, telling their story as a lesson to others not to fall for the narco life, and they regret what they put their families through. "Our fathers put on their suit of armor and their badge, and they are going out there on the streets of Chicago,” Mia confesses. “It’s the very same streets that our husbands were flooding with drugs.”
Patients with chronic diseases are getting limited treatment in health centers and are still waiting for restoration of power and water supply. Univision News visited several hospitals.
The 1998 hurricane killed 11,000 people in Honduras and Nicaragua and left more than a million homeless. As a result, the United States granted temporary visas to citizens from those countries who were living illegally in the U.S.
The weather station in Key West, Florida, is sending weather balloons into the atmosphere to measure the powerful category 5 hurricane, which currently has winds of 175 miles per hour.
The Trump administration on Tuesday rescinded the DACA program that President Barack Obama introduced to protect the young undocumented immigrants known as Dreamers. Sessions said the program would be phased out over six months to allow Congress time to have another go at passing legislation.
Two brothers graduated from Harvard and Middlebury. They grew up in Houston and are practicing Christians. "Like "good Americans," they like Taco Bell. They have lived most of their lives in the United States and have a simple request for the president: "Do not get rid of DACA."
During a meeting in the Oval office Friday, the president was asked by reporters about the future of DACA, to which he responded that a decision was coming soon. "We love the dreamers, we love everyone," he added.
Nilsa Huete is an undocumented Honduran immigrant living in Key West, Florida. In the last five months, five of her family members have been arrested by agents from the Monroe County Sheriff's Office. Now she’s fighting against the deportation of her daughter and brother.
The Univision News anchor sat down with Chris Barker, leader of the "Loyal White Knights," a branch of the Ku Klux Klan. The interview was part of the special that aired Sunday on Aqui y Ahora.
A crowd surrounds a young man in a Trump hat and t-shirt, and draped in an Israeli flag, on Boston Common.
Jorge Ramos spoke with the musician's lawyer after he was detained by the Nicolas Maduro regime. The attorney said Arteaga had been "tortured". The Univision reporter asks: #FreedomforWuilly
The new defense team of alleged drug trafficker Joaquin 'El Chapo' Guzman could face a legal hurdle to represent him in federal court of New York, after Univision News learned that his attorney Jeffrey Lichtman previously represented a key potential witness in the trial. That could represent a conflict of interest in the case, experts say.
The former Republican presidential candidate says a Senate immigration proposal that would cut immigration in half is flawed, but he backs idea of merit-based points system.
Republican senators continue this week to seek ways to repeal the existing health care law known as Obamacare. Their proposal includes a halt in reimbursement for Medicaid patients who visit Planned Parenthood’s clinics. This is the testimony of a 27-year-old woman who relies on the reproductive health services offered by the organization.
El Profesor Xavi Ondo creó su propio concurso de baile en Las Vegas para Chikybombom
Descubrimos que el aclamado Profesor Xavi Ondo ahora vive retirado en Las Vegas, donde lleva una vida tranquila llena de lujos. ¡Y por eso pudo crear su propio concurso de baile para complacer a su gran amiga Chikybombom!
Escucha los horóscopos del día viernes con Mizada Mohamed en HOY
La astróloga y vidente hizo las predicciones del día miércoles 15 de noviembre de 2017 para cada uno de los signos zodiacales.
Si creías haber visto todo de Ana Patricia, espérate a ver sus movimientos de cadera en la final
La conductora se encuentra ensayando sus bailes para la gran final de Mira Quién Baila, donde promete sorprender a todo el público.
Silencio por víctimas de Puerto Rico y México, la apertura de los premios Latin GRAMMY
Alejandro Sanz habló sobre los beneficiarios de DACA tras recibir el reconocimiento 'Persona del Año' e integró dreamers a su presentación. Juanes ganó en la categoría 'Álbum Pop Rock' y Despacito de Luis Fonsi y Daddy Yankee obtuvo el galardón 'Canción del Año'.
publicidad
'Los Ángeles en un Minuto': dos niños murieron tras el choque de una patrulla de policía con dos autos
En un minuto también te informamos que 22 empleados de una tienda Wallmart fueron arrestados y 15 de ellos acusados de fraude. Entre tanto, buscan aun ladrón que se llevó un anillo de 14,000 dólares de una joyería. Investigan su posible conexión con otros robos de este tipo.
Autos
Encuentra aquí el mejor contenido original y en español sobre el mundo de los autos. Artículos, fotos y videos con lo más reciente de los autos.
"No nos han dado respuesta de qué pasó con ella": familiar de hispana que murió durante liposucción en Tijuana
David Rynoso, sobrino de la víctima, dice que su tía viajó desde EEUU a Tijuana para la cirugía estética. Asegura que se enteraron de su mal estado de salud por un conductor de Uber que se preocupó por la tardanza y entró a investigar. Esperan que la clínica explique qué ocurrió.
Shows
Noticias Univision Digital Newscast
¿Yaya Touré cerca de la MLS?
El legendario jugador tendría decidido dejar Manchester City para llegar a la liga en 2018. New York City FC es la posibilidad más viable.
México dentro de los países que más han comprado boletos para Rusia 2018
Actualmente se encuentra abierta la seguda ronda de venta de boletos para el Mundial y la afición mexicana ha adquirido gran número de entradas para ver al Tri.
MLS
Alberth Elis, el renacer de ´La Pantera´ en la MLS
El potente atacante hondureño ha brillado intensamente con el espectacular ataque de Houston, el cual tiene al Dynamo a un paso de regresar a la gran final.
Los saltos del 'Conejo', la carrera que Óscar Pérez podría alargar a un cuarto de siglo
El arquero de 44 años se convirtió en emblema de Cruz Azul, en el que debutó en 1993 y militó hasta 2008. Su retiro podría prolongarse seis meses más.