Government programs that take money from high-income people and give it to low-income people typically

Question

Quizplus · Accepted Answer

Government programs that take money from high-income people and give it to low-income people reduce economic efficiency because they distort incentives. High-income earners may work less or hide their income to avoid the tax, while low-income earners may have less incentive to work or improve their skills if they rely on government assistance. This can lead to a reduction in overall productivity and economic growth.

Government Programs That Take Money from High-Income People and Give