Income Redistribution
April 8, 2009
Income redistribution refers to transfer of income, wealth or property from some individuals to others. There are many arguments that support the redistribution of income. The most important arguments are as follows:
First Argument in Favor of Income Redistribution
The most important argument is that redistribution of income will be of immense help in uplifting the poorer sections of society. Those who do not have access to even the most basic amenities for survival like food, shelter, clothing, medication, education, etc. will be amongst the biggest beneficiaries of such a scheme. These sections of society will get access to basic amenities and this will help elevate the overall standard of living. This will mean lower mortality rates that are caused by reasons of poverty.
Second Argument in Favor of Income Redistribution
The second argument in favor of income redistribution is that the rich, who have access to a large number of resources, have a certain social obligation to help the less fortunate. Those who are born with certain resources have a huge advantage over those who have not. Income redistribution is an attempt to bridge that gap between those who have this advantage and those who don’t.
Third Argument in Favor of Income Redistribution
The third argument is that within a capitalist society, the rich acquire their riches by exploiting the poorer classes of society. Since, their profit is essentially through the labor of the lower classes, it is prudent for them to ensure that their riches are used in the welfare of the same lower classes.
Other Arguments in Favor of Income Redistribution
One of the other main arguments in favor of income redistribution is that by enabling more and more people to reach the middle class of society, there will be a bigger base of consumers in the country. This will also increase consumption, which will go a long way in boosting the flagging economy by boosting production, distribution, etc. of consumer products. Thus, expanding the middle class is in the benefit of the national economy.
One of the other arguments is that the current system of taxation is not an adequate measure to distribute wealth. While the rich are getting taxed, the value of the taxation diminishes by the time it reaches the poor. This system does not adequately ensure that the poor are able to take complete advantage of the taxes paid by the rich through welfare agencies.
One very interesting argument in favor of income redistribution is that the rich utilize more government resources and should be even further taxed for it. For instance, the rich have more property which requires more protection from the government. The same is true of other assets owned by the rich. The argument is that the rich use of more public resources than the poor, they could compensate by contributing to the income of the poor.
Final Argument in Favor of Income Redistribution
The final argument is to do with equal rights and social justice. In order to create equality among people, it is important to give them equal opportunity. This is even more important when it comes to access to basic services like education and health care.
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income distribution is a form of socialism that america needs to better apply. Wealthy people should pay more tax while middle working class should have a tax relief. this would create a balance in the economy. more money for more people, less revenu for rich people, it is easy, but govnt need to please wealthy peoples of America.