Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

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 visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.