When income distribution data for the United States is adjusted for taxes and in-kind transfer payments the distribution is more equal than before such an adjustment is made.

Question

Quizplus · Accepted Answer

Adjusting income distribution data for taxes and in-kind transfer payments accounts for the redistributive effects of the tax system and government benefits, which generally results in a more equal distribution of income by transferring resources from higher-income to lower-income individuals.

When Income Distribution Data for the United States Is Adjusted