The income tax is a powerful stabilizer because of its progressivity.

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The income tax is a progressive tax, meaning that it takes a larger percentage of income from high-income earners than low-income earners. This helps to reduce income inequality and stabilize the economy, as those who can afford to pay more in taxes do so, while those who are struggling financially are not burdened as heavily. This progressivity makes the income tax a powerful stabilizer.

The Income Tax Is a Powerful Stabilizer Because of Its