Income gap

The income gap between the rich and everyone else has been increasing by every major measure for more than 30 years. Much of this has been caused by globalization but that is coming to an end. One way to understand this disparity is to compare CEO salaries. In 1950 the average CEO earned 25 times as much as a factory worker and today it is 300 time more. The way to reverse this trend is to do a couple of things each year. This year the government should start taking social security tax from all earned income instead of stopping at $184,000. Second increase the child tax credit from $2,200 to $4,000. Collecting SS tax on all income would bring in $475 billion per year and increasing the child tax credit would only cost the government $100 billion. This would mean a family of four earning $100,000 would pay zero income tax or $3,000 less than they now pay. Some states are implementing state income taxes on millionaires. For this to be effective it must be national otherwise people will just relocate to another state. A 5% surtax on all earned income over $1 million per year would bring in $80 billion.