Explore BrainMass

Effects of capitalism

Some say that capitalism is designed to make the rich richer and the poor poorer.
In that case you have to work hard and become rich! Then you can relax a bit and just maintain.
Our tax system is supposed to be progressive (the higher the income the higher portion of it goes to the IRS.)
However, in the US the top 5 percent of the population pays about 11% effective tax rate while the middle class pays about 18%. Large corporations get to avoid paying taxes using complicated tax strategies. They hire sophisticated tax advisors who know the 15K plus pages tax code better than the IRS.

Enron increased profits from 96 to 99 for annual report purposes, but paid no taxes to the IRS during those years. IRS officials could not fight the Enron tax advisors.


Solution Preview

It is clear from this passage that the US tax code need to be simplified so that any US citizen can be able to read it and understand it in its entirety. It serves ...

Solution Summary

Is capitalism designed to make the rich richer and the poor poorer?