Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

If policymakers are concerned about the unequal distribution of income within society, then they should prefer a ________ tax system.

Sagot :

Lanuel

Answer:

Progressive income

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

There are three (3) types of taxation used by the government, these are;

1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.

For instance, John pays 30% on $70,000 and Joyce pays 10% on $45.000.

2. Proportional taxation: it involves charging both lower and higher income earners equally in proportion to their income.

For instance, John pays 20% on $50,000 and Joyce pays 20% on $36,000.

3. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.

For instance, John pays 15% on $60,000 and Joyce pays 20% on $36,000.

Hence, if policymakers are concerned about the unequal distribution of income among employees or workers within their society, then they should prefer a progressive income tax system.

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.