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Question
an article in the new york times noted that a proposal by 2016 democratic presidential candidate hillary clinton would \increase taxes on the wealthiest americans to combat a widening gap between rich and poor.\
source: amy chozick, \hillary clinton offers her vision of a fairness economy to close the income gap,\ new york times, july 13, 2015.
currently, the effect of federal taxes is to make the distribution of income
a. less equally distributed after taxes than it is before taxes.
b. better for some and worse for others after taxes.
c. more equally distributed after taxes than it is before taxes.
d. about the same after taxes as it is before taxes.
Federal taxes are designed to be progressive. Progressive taxes take a larger percentage of income from high - income earners. This means that after taxes, the income distribution is more equal. For example, if a rich person pays a higher percentage of their income in taxes, and a poor person pays a lower percentage (or even gets some tax benefits like tax refunds in the case of negative income tax in some systems), the gap between rich and poor in terms of income is reduced.
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C. more equally distributed after taxes than it is before taxes.