Inequality And Wealth Distribution Questions
Taxation policy can have a significant impact on wealth distribution. Progressive taxation, where higher income individuals are taxed at a higher rate, can help reduce wealth inequality by redistributing wealth from the rich to the poor. This policy allows the government to collect more revenue from those who can afford to pay more, and use it to fund social welfare programs and public services that benefit the less affluent. On the other hand, regressive taxation, where lower income individuals are taxed at a higher rate, can exacerbate wealth inequality by placing a heavier burden on the poor. Therefore, the design and implementation of taxation policies play a crucial role in shaping wealth distribution within a society.