When the government implements programs such as progressive income tax rates,which of the following is likely to occur?
A)equality is increased and efficiency is increased.
B)equality is increased and efficiency is decreased.
C)equality is decreased and efficiency is increased.
D)equality is decreased and efficiency is decreased.

Question

Quizplus · Accepted Answer

Progressive income tax rates aim to increase equality by taxing higher-income individuals at a higher rate than lower-income individuals. This will result in a more equal distribution of wealth. However, this can also decrease efficiency as higher tax rates may disincentivize individuals from working harder or investing in the economy. Therefore, choice B is the best answer.

When the Government Implements Programs Such as Progressive Income Tax