America is one of the richest nations in the world and has high inequality compared to other industrialized countries. Inequality exists in income, wealth, power and education. Legally and socially poor people in the United States tend to stay in a cycle through life, not always by choice but because they are given fewer opportunities, education, and tools to achieve success. The poverty class has a much larger income gap than the upper class, the American dream diminishes through opportunity and is shown through statistics. Inequality exists and is high in America due to the amount of income and wealth distributed through power. In America the distribution of income is very unequal and the value of a person's wealth is based on their income minus debts. “In 2007, the richest 1% of families (the upper class) owned 34.6% of all private wealth, and the 19% (the managerial, professional and small business strata) owned 50.5% of all private wealth. %, meaning that only 20% of the population owned a remarkable 85%, leaving only 15% of the wealth to the bottom 80% (wage workers)” (Domhoff, 2011). On the contrary, the poor do not advance and the rich get more. Americans are judged and placed into class categories through their home ownership which translates into wealth. Americans' social class is often associated with their resources and wealth. “People seek to own property, to have high incomes, to have interesting and secure jobs, to enjoy the best of travel and leisure, and to live long and healthy lives” (Domhoff, 2011). Power indicates how these “values” are not distributed equally in American society. Huge gains for the rich include cuts to capital gains and dividends, and when tax rates fall for a small percentage of Americans income is redistributed. Taxes directly impact Americans' wealth and income every year. “For most Americans, the word 'poverty' suggests destitution: the inability to provide a family with nutritious food, clothing, and reasonable shelter” (Rector, 2007). Poverty can be socially defined through severe deprivation of education, food, drinking water, sanitation, and health care, regardless of a person's income. The U.S. Department of Health and Human Services updates its poverty guidelines periodically, and depending on the state you live in, the guidelines fall within the range.