A tax that is designed to be progressive will improve

Question

Quizplus · Accepted Answer

A tax that is designed to be progressive aims at achieving vertical equity, which means that those who have more income pay a higher percentage of their income in taxes than those who have less income. This helps to reduce income inequality and create a fairer distribution of resources. However, it may not necessarily improve efficiency or horizontal equity, which refers to people in similar situations paying similar amounts of taxes. It also may not promote absolute equality, as some people may still have higher incomes than others after paying their taxes.

A Tax That Is Designed to Be Progressive Will Improve