Question

review question (drag circle to correct answer) which of the following tax systems is considered to be more equitable in terms of redistributing wealth? a. proportional tax b. regressive tax c. both are equally equitable d. neither is equitable

Explanation:

A progressive tax system (not listed here but for comparison) takes a larger percentage of income from high - income earners and a smaller percentage from low - income earners, which helps in redistributing wealth. A proportional tax takes the same percentage of income from all earners regardless of income level, and a regressive tax takes a larger percentage of income from low - income earners. So, neither proportional nor regressive taxes are as effective as a progressive tax in redistributing wealth, but among the two given, neither is considered highly equitable for wealth redistribution.

Answer:

d. Neither is equitable