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Economics Article Analysis
Students Name
Institution
Date
Economic Article Analysis
The article “The Top 1% of…. What?” was authored by Reynolds Allan and published by the Wall Street Journal in 2006. It gives a perceptive of a lawmaker regarding the wealth accumulation and possession of the national income. In the article, the author highlighted some of the issues being raised by Virginia Democrat Senator-elect Jim Webb regarding the widening of income possession between the rich and the poor.
However, the article provides a deep understanding and study of the relationship between personal income and the national income contribution. Allan (2006) stated that top 1% of Americans take 16% of national income and therefore, means that the rich take the larger portion of taxes, which are being paid by the majority of American. In the article, it is also stated that 1% of American has never received any national income, which includes corporation income. The article, therefore, states there is a big gap between the revenue contribution and the beneficiary of the national income. The article also stated that a survey indicates that 1% of Americans mostly households contributes 16% of the national income but they do not receive much in return compared to other people. It is also noted that personal income is being determined by the tax, which is being paid based on the taxation act. The reform on taxation act is, therefore, an ideal method to reduce the gap and ensure that the majority of America experience income growth.
The article also pointed that personal income of Americans keeps fluctuating and between 1997 and 2004, the national, and personal income of many people increased significantly and this, therefore, contributed to an increased in the national contribution by almost 5% between 1993 and 2003 from 27% to 31%. It also addresses the loopholes in the tax law, which has made it difficult to address income inequality among the American people.
The article is relevant to the course because it addresses some of the topics covered within the course. First, the article discusses the economic status and capacity of personal and national income. The article also discusses the issues related to the economic growth of individuals and how it affects the nations' GDP. In the article, the author illustrated that tax act and law and how it affects the personal income of America. It is highlighted that 1% contributes to the national income and how it influences the national growth of the country. In the article, the author also discusses the taxable income and how it affects the national income of the country CITATION All03 \l 1033 (Allan, 2003). Based on the article, it is evident that income per tax is less than income per family and therefore, it means that most people pay less tax compared to what they earn. In this case, the article highlights loopholes in the tax law or act and this means that it addresses economic inequality, which is created by the taxation method. This is covered in the course in economic inequality and the taxation act of the country and how it affects the nation.
The article also discusses corporate tax and individual tax and the shift in the taxation law, which has made many people shift their locations. In this case, the article talk of the economic shift based on taxation, which is also address in the course and therefore, it is also highlighted some of the issues which we have addressed in the course regarding corporate tax, individual tax, and limited liability and the mode of taxation, which should be adopted to entice investors in the country and therefore, it address several issues in the course.
References
BIBLIOGRAPHY Allan, R. (2003). The Top 1% of What? Wall Street Journal, 2-5.
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