Question

1) Expain how your zip code and parents have more impact on your economic destiny than not

2) Give at least two example of how tax policy can enhance the growth of wealth for those who are rich

Answer 1

1) zip code and parents were more impactful in old times but nowdays the are less effective. Because year by year world is becoming global village then everything is reaching everywhere. Most places of world have close to all opportunities like business firms, good education etc. Then you can easily be rich. And now most of the countries provides free education for those whose parents are not rich. Then the burden from poor parents is becomes just a excuse now. Definitely getting rich parents is a blessing but if you want to become rich then parents impact can't stop you. But if you are not eligible to handle the wealth that you gets from rich parents then you will become poor. So the conclusion is that zip code and parents don't have powerful impact economic destiny.

2) yes the tax policy can enhance the growth of wealth for those who are rich.

In the US tax rate on investment income is 23.4% and tax for income from work is 43.4%. rich and wealthy people earns from investment and middle class people earns from work. It means warren buffet's secretary have to pay higher income tax rate.

There are many loopholes in tax policy. Estate tasex are very less (5.3 million per individual). So the wealthy people investes in estate for tax reduction.