Income Inequality And Tax Dodging.docx

INCOME INEQUALITY AND TAX DODGING

I.

Introduction What is income inequality and tax dodging? How does income inequality affect globalization? Tax dodging as a crime of globalization, tax dodging and income inequality has a following recommendation.

II.

Body 1. Income Inequality a) Refers to the extent to which income is distributed in an uneven manner among a population. b) It is often presented as the percentage of income related to a percentage of the population 2. Tax dodging a) An illegal method used to reduce the amount of tax that a person or company has to pay 3. Globalization Affect Income Inequality b) One of the major issues on the state of income inequality is the effect of globalization through foreign direct investment (FDI). c) It is well known that FDI inflows create employment opportunities for unskilled labor-intensive countries. Hence, during recessionary (expansionary) periods, FDI outflows should cause an increase in a developing (developed) country’s unemployment rate, worsening income inequality. d) Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company. 4. Tax dodging as a crime of globalization a) Tax dodging is not just a problem originating in the corporation. Corporate tax avoidance is a practice that involves different corporations and different territories simultaneously and, as

such, it has global consequences because these corporations do not pay their fair tax in the countries in which they operate. 5. Pay workers a living wage and close the gap with executive rewards. a) Executive compensation is skyrocketing while too many people do not have a living wage and decent working conditions. Minimum wages must be based on a living wage 6. Change the global system for R&D and the pricing of medicines so that everyone has access to appropriate and affordable medicines a) Pharmaceutical companies should not be allowed to monopolize the making and pricing of medicines which deprives the poor of access to more affordable medicines.

III.

7. Share the tax burden to level the playing field. a) The tax burden is falling on ordinary citizens while the richest citizens and individuals pay too little. 8. Use progressive public spending to tackle inequality. a) There must be free public health and education to fight poverty and inequality at the national level. Conclusion 1. Income inequality and tax dodging were not good to the country. Many people are not able to buy their needs for their family. while in tax dodging the rich became richest and the poor became poorer because of the tax that they used to pay. Generally, income inequality and tax dodging can give more burdens not only in specific person but into the entire country.