Which of the following tax policies would increase the redistribution of wealth across society?
A) Repealing the federal estate and gift taxes
B) Increasing the highest marginal income tax rate by 10%
C) Replacing the progressive income tax rate structure with a flat rate
D) Replacing the income tax with a national sales tax

Question

Quizplus · Accepted Answer

Increasing the highest marginal income tax rate would result in a larger portion of income being taken from individuals in higher income brackets, which would increase the redistribution of wealth across society. Repealing the federal estate and gift taxes, replacing the progressive income tax rate structure with a flat rate, and replacing the income tax with a national sales tax would all likely result in less redistribution of wealth.

Which of the Following Tax Policies Would Increase the Redistribution