Saturday, May 1, 2010

Update of 1rst bonus post

Here we go !
What I mean by increase in pre-tax is the amount of money people earn before taxes get deducted from it. In an effort to attract and retain employees, lately employers have been providing compensation packages that include wages and benefits. Benefits that are paid for by the employer generally are not taxable to the employee. If benefits, such as group life insurance, are paid for by the employee, generally the money used to pay for the benefits is taxable. In recent years, tax laws have been created that permit certain benefits like 401(k), retirement benefits, cafeteria benefits, and health savings accounts to be paid for with pretax money. Pretax benefits enable both employers and employees to set aside money on a tax-free, salary-reduction basis for retirement expenses as well as for qualified dependent care and healthcare expenses.
The others causes of increasing inequality we learn from Krugman's article are (to name only few):
Income inequality: apparently, some people are earning way much more than others;
The rich are living in a virtual world that separate them from other social classes;
Debt: middle class families are taking on more debt to either send their children to good schools, or to buy houses they can't afford;
Education: schools in the poor neighborhoods are degrading,
Lack of good healthcare for low income families;
Innequal opprtuny given to chidren based on their socio-economical environment;
The tax sytem that gives a break to the weathy, and not to the poor;

2 comments:

  1. Good working through of this - with our next reading, we'll be talking more about how to work through the difficult vocabulary we may find in texts.

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  2. I had to do some reshearch on the subject, even though it took me a while. I mean for me to get the time to do it, otherwise there is info about the subject online.
    Thank you for your patience.

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