QUESTION IMAGE
Question
the distribution of income within the borders of a hypothetical country has begun troubling members of congress. specifically, the members of congress are concerned that a very small minority commands a large portion of the countrys total gdp. which of the following methods might the government use to redistribute income from the high - income earners to lower - income earners? (1 point)
government - provided housing
social security payments
food stamps
progressive tax
A progressive tax is a tax system where the tax rate increases as the taxable amount increases. This means that high - income earners pay a higher percentage of their income in taxes. The government can then use these tax revenues to fund programs that benefit lower - income earners (such as government - provided housing, Social Security payments, and food stamps). However, the question is about the method of redistributing income from high - to low - income earners. While government - provided housing, Social Security payments, and food stamps are forms of government spending that can help low - income earners, they do not directly take a larger share of income from high - income earners in the way a progressive tax does. A progressive tax is a direct mechanism for taking more from high - income earners (in terms of the percentage of income) to fund government initiatives that can assist lower - income groups.
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progressive tax