The amount of income taxes demanded from the wealthy has been
declining in many states while the poor have been asked to pay a greater
percentage of their income through higher sales taxes.
That shift in tax policy has been promoted in many states as a
way to boost the economy by encouraging businesses to grow. But it also could
be contributing to a widening gap between the rich and poor in the U.S.
Economists point to a variety of factors for the gap, including
changes in labor markets and
federal policies. Yet data suggest that state
governments also may play a role.
While states have been gradually changing their tax structure, a
growing number have been reducing their social safety nets by paring back
welfare and unemployment benefits.
