At a recent public meeting organized to discuss poverty reduction, Tobin proposed that an extra tax of 0.0001 percent be imposed on every single transaction worth more than $1 million carried out at the stock exchanges. This would be an example of which of the following poverty-reduction strategies?

Question

Quizplus · Accepted Answer

Tobin's proposal to impose an extra tax on large transactions at stock exchanges is an example of income redistribution. This strategy aims to collect additional funds from wealthier segments of society (those engaging in million-dollar transactions) and presumably use these funds to support poverty reduction efforts, thereby redistributing income from the rich to the poor.

At a Recent Public Meeting Organized to Discuss Poverty Reduction