Over the past forty years, the Gini Coefficient in the U.S. has increased to .47, but in European countries Gini Coefficients sit below .30 indicating substantially less income in equality.  Richard Layard of London School of Economics argues income inequality creates externality.  This spill over cost should be corrected by progressive taxation in order to achieve the greatest happiness objective.  In this paper the author investigates the correlation Gini Coefficient and Economic Freedom Indexes.  Time-seires cross sectional analysis will be used to provide an empirical validatin for economi policy.  "Economic Freedom" from the Fraser Institute database, data from The World Bank and the International Monetary Fund will be utilized for this research.