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How Do Taxes Affect Income Inequality

Question 37

Multiple Choice

How do taxes affect income inequality?


A) taxes have no effect on income inequality.
B) taxes tend to reduce income inequality, because only about 40% of taxes are progressive.
C) taxes tend to increase income inequality, because only about 40% of taxes are regressive.
D) taxes tend to reduce income inequality, because only about 40% of taxes are proportional.

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