Th4.5: ^^ Income Distribution

Question 1

What will a progressive tax system do?

Answer 1

increase the equality of income distribution as more money is proportionally taken from the rich rather than the poor

Question 2

What will a regressive tax system do?

Answer 2

decrease income equality

Question 3

Why will a move from indirect to direct taxes improve equality/

Answer 3

since direct taxes tend to be progressive and indirect taxes regressive

Question 4

What taxes are the most progressive form of taxation?

Answer 4

inheritance taxes

Question 5

What do high corporation taxes do?

Answer 5

take money from shareholders, who tend to be very well off, and give them to the government to spend on the poor

Question 6

What is one problem with using tax to redistribute income?

Answer 6

it does not give the poor anything, so the system needs to be supported with benefits