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Solutions to Taxing $250,000 Earners. Student’s Name: Institutional Affiliation: Many have argued that increasing the tax on households that earn a combined annual income of $250,000 and above is an unwelcomed move that would not achieve the intended purpose, which is to reduce the gap between the have and the have-nots. The plan is also expected to increase the number of households that fall into the middle-class bracket. However, pundits have retorted that the gap will only grow and that implementing a blanket taxation policy is not the way to go considering standards of living differ all across the state. The move to increase the tax on $250,000 earners and above is a welcome one, but it should also take into account different locations of earners and how such laws will affect them. By most standards, any household that earns $250,000 a year is quite a substantial amount. However, whether this amount is significant or not depends entirely on where people live. In a recent survey that was conducted, researchers discovered that people living in locations such as Peoria, Illinois are more likely to save more money than those living in urban areas such as Los Angeles, Boston, and San Francisco. The high cost of life in these regions coupled with management of other debts such as student loans, water and electricity often mean that the amount that couples save is small to an insignificant amount. The best solution would thus be to make the tax regime apply selectively depending on the region. Economically, this would ensure that people who earn above the stipulated amount contribute more and help in income distribution among the poor. It would also mean that
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