What is likely to occur when the government implements programs such as progressive income tax rates
A)Equity and efficiency is increased.
B)Equity is increased and efficiency is decreased.
C)Equity is decreased, and efficiency is increased.
D)Equity is decreased, and efficiency is decreased.

Question

Quizplus · Accepted Answer

Progressive income tax rates increase equity by mandating that individuals with higher incomes pay a greater percentage of their income in taxes than those with lower incomes. However, this can decrease efficiency by reducing incentives for individuals to work and earn more income, as they will face higher tax rates. Additionally, progressive income taxes may encourage tax avoidance and evasion, further reducing efficiency.

What Is Likely to Occur When the Government Implements Programs