Acording to the PressTV
, The report pointed out that the U.S. has among the highest income inequality and relative poverty among the 34 countries that make up the Organization for Economic Cooperation and Development.
"The U.S. education system is less effective than those of other countries in helping children realize their potential," the report said. "The United States is one of only three OECD countries that on average spend less on students from disadvantaged backgrounds than on other students."
Income inequality can be bad for health, education, innovation and economic well being, the report noted, citing experts' studies.
Also, the U.S. tax and benefits system is much less effective in reducing relative poverty than that of other OECD countries, the report found.
The federal government should refocus its safety net programs to better address the needs of the very poor and shift away from tilting them toward certain demographic groups, such as the elderly and disabled. It should also simplify its lifeline initiatives, which would reduce costs and improve take-up.
OECD favors eliminating some tax breaks for high-income individuals on mortgage interest and health insurance. It also proposes reducing tax breaks corporations receive when they borrow to make investments. Business Insider
FACTS & FIGURES
The Great Recession worsened the wealth inequality in the U.S.
White Americans have 22 times more wealth than blacks -- a gap that nearly doubled during the Great Recession. The median household net worth for whites was $110,729 in 2010, versus $4,995 for blacks, according to recently released Census Bureau figures. CNNMoney
The racial wealth divide is nothing new. Black and Hispanic Americans have historically had lower incomes, higher unemployment and less education. But the Great Recession exacerbated the problem. In 2005, the net worth difference wasn't quite as stark. Whites had 12 times more wealth than blacks and 8 times more than Hispanics. CNNMoney
U.S. inequality is at its highest point for nearly a century. Those at the top are enjoying a larger share of the national pie while the number below the poverty level is growing. The gap between those with the median income and those at the top is growing, too. The U.S. used to think of itself as a middle-class country, but this is no longer true. FT.com
A report released in January by the Congressional Research Service (CRS), on the changes in the distribution of income among individual filers of tax returns between 1996 and 2006, has concluded that the tax cuts that were first enacted under the presidency of George W. Bush have contributed to a widening of the United States wealth gap. Tax-News.com