Ignoring taxes when making redistributive decisions has no impact on equity.
A) True
B) False
C) Uncertain

Question

Quizplus · Accepted Answer

Ignoring taxes when making redistributive decisions can have a significant impact on equity. Taxes are a crucial tool for redistributing income and wealth, and their absence or presence can greatly affect the distribution of resources in society. For example, if taxes are not taken into account, a rich person may appear to have the same income as a poor person, even if they pay significantly more in taxes. As a result, ignoring taxes can distort the true picture of income distribution and may lead to unfair redistributive decisions.

Ignoring Taxes When Making Redistributive Decisions Has No Impact on Equity