The benefit of making the income tax system more progressive is ________,and the cost is ________.

Question

Quizplus · Accepted Answer

Making the income tax system more progressive means that higher earners will pay a higher percentage of their income in taxes compared to lower earners. This typically results in a decrease in income inequality because the government is redistributing wealth from those who can afford to pay more to those who need it more. However, the cost of this is a decrease in work incentives for those who would be paying higher taxes. They may be less motivated to work harder or earn more if they know that a higher percentage of their income will be taken in taxes.

The Benefit of Making the Income Tax System More Progressive