INCOME INEQUALITY AND TAX DODGING

I. Introduction

What is income inequality and tax dodging? How does income inequality
affect globalization? Tax dodging as a crime of globalization, tax dodging
and income inequality has a following recommendation.

II. Body

1. Income Inequality
a) Refers to the extent to which income is distributed in an
uneven manner among a population.
b) It is often presented as the percentage of income related to
a percentage of the population
2. Tax dodging
a) An illegal method used to reduce the amount of tax that a
person or company has to pay
3. Globalization Affect Income Inequality

b) One of the major issues on the state of income inequality is

the effect of globalization through foreign direct investment (FDI).

c) It is well known that FDI inflows create employment

opportunities for unskilled labor-intensive countries. Hence, during
recessionary (expansionary) periods, FDI outflows should cause an
increase in a developing (developed) country’s unemployment
rate, worsening income inequality.
d) Foreign direct investment (FDI) is an investment made by a
firm or individual in one country into business interests located in
another country. Generally, FDI takes place when an investor
establishes foreign business operations or acquires foreign business
assets, including establishing ownership or controlling interest in a
foreign company.

4. Tax dodging as a crime of globalization

a) Tax dodging is not just a problem originating in the
corporation. Corporate tax avoidance is a practice that involves
different corporations and different territories simultaneously and, as
 such, it has global consequences because these corporations do
not pay their fair tax in the countries in which they operate.

5. Pay workers a living wage and close the gap with executive
rewards.

a) Executive compensation is skyrocketing while too many

people do not have a living wage and decent working
conditions. Minimum wages must be based on a living wage

6. Change the global system for R&D and the pricing of medicines so
that everyone has access to appropriate and affordable medicines

a) Pharmaceutical companies should not be allowed to

monopolize the making and pricing of medicines which deprives
the poor of access to more affordable medicines.

7. Share the tax burden to level the playing field.

a) The tax burden is falling on ordinary citizens while the richest
citizens and individuals pay too little.
8. Use progressive public spending to tackle inequality.
a) There must be free public health and education to fight
poverty and inequality at the national level.
III. Conclusion

1. Income inequality and tax dodging were not good to the country.
Many people are not able to buy their needs for their family. while in tax
dodging the rich became richest and the poor became poorer because
of the tax that they used to pay. Generally, income inequality and tax
dodging can give more burdens not only in specific person but into the
entire country.