Firstly, households, as well as on growth-enabling infrastructure

Firstly, I believe that taxes can be used as an effective tool. Specifically,
a tax code and policy that increase rates
on the upper class would be advantageous. This can lead to income distribution by raising revenues to finance public expenditure on health and
education that tend to favour low-income households, as well as on
growth-enabling infrastructure that can also increase social equity. Secondly,
losing tax loopholes that largely benefit
the wealthy, such as corporate tax breaks, could aid the middle-class. Today’s
tax policy enables a disproportionate share of the income of the rich to evade
taxation than the middle class. According to Larry Summer,  “closing loopholes that only the wealthy can
enjoy would enable targeted tax measures such as the earned-income tax credit
to raise the incomes of the poor and middle class more than dollar for dollar
by incentivizing working and saving” (CITATION). Additionally, I agree with Thomas
Piketty’s proposal of a progressive global tax on capital, in which taxing
wealth can serve as a solution to the divergence.  However, risks include establishing policies
that would require a considerable degree of international coordination, and
possibly discouraging entrepreneurship and incentives (due to higher taxation).

Additionally, I believe that actions can be taken to form a
better-functioning education system. Firstly, there should be a greater
investment in human capital by expanding access to high-quality and affordable
early education; creating pathways to good jobs such as apprenticeships,
national service opportunities, and a national subsidized jobs program. Next, there
should be an investment in infrastructure and other nationally needed jobs to
pursue full employment. Lastly, steps can be taken to Amplify workers’
bargaining power. This can be done by increasing fines for illegal
anti-union behaviour, encouraging minority unions,
and reversing state
laws that undermine unions and prevent them from collecting
dues for benefits they provide workers at unionized workplaces.

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