Socialism is any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods. Redistribution of wealth is the transfer of wealth from some individuals to others.
Some methods of redistributing wealth are: welfare, nationalization, taxation and socialism. The tax system is another means of transferring wealth. A progressive tax on income and wealth means that the tax rate increases the more income or wealth that a person owns. The distribution is spread from high to low, with top earners paying the most in tax and the bottom earners paying the least.
The New Senate Plan
The compromise reached by Democratic leaders with moderate Republicans involves cuts to spending and tax-credit provisions in the stimulus bill before the Senate, including:
- Funding to computerize health records
- National study on the comparative effectiveness of health treatments
- A tax break for solar and wind firms
- Medicaid payments to states
- A $500 payroll tax credit for people earning less than $75,000
- An expansion of tax credits for low-income workers with children