The progressive taxation system of the Federal Government shows the clear picture of levying a less tax for the low and middle-income groups and levying a high level of tax for the rich-income group and those who are earning above the fixed tax slab. In the US country, economic inequality occupies the major count in the possession of more wealth rather than calculating with the level of income.

Thus the level of income distribution not considered as a vital parameter to judge the level of economic inequality among the population figures in the United States. Through progressive taxation, the highly salaried people have the duty to pay high taxes accordingly with their payment structure. The situation of paying more tax deductions changes the attitude of the employees to work with dedication. This will reverse the position of all the employers to reduce the incentive to the workers, as entrepreneurs also should pay taxes accordingly with the revenue earned through their business. So the level of output will face a decreasing trend with the lack of concentration on work. But on the other side, economic equality also motivates the employers and the employees who pay less taxes will work hard to earn more and the saved money will relieve from the issue of running the family and the business and improves them to start the next step by step success.