Economics Fiscal Policy Questions
The role of fiscal policy in reducing income inequality is to use government spending and taxation to redistribute income and wealth. This can be achieved through progressive taxation, where higher-income individuals are taxed at a higher rate, and through the provision of social welfare programs and services targeted towards low-income individuals and households. Additionally, fiscal policy can also involve implementing policies that promote economic growth and job creation, which can help to reduce income inequality by providing more opportunities for individuals to earn higher incomes.