What is the role of taxation in reducing economic disparities?

Economic Disparities Questions



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What is the role of taxation in reducing economic disparities?

The role of taxation in reducing economic disparities is to redistribute wealth and income from the wealthy to the less affluent members of society. Through progressive taxation, where higher income individuals are taxed at a higher rate, governments can collect revenue that can be used to fund social welfare programs, education, healthcare, and infrastructure development. This redistribution of wealth aims to provide equal opportunities and improve the living standards of those who are economically disadvantaged, ultimately reducing economic disparities.