A tax that is a form of social redistribution of income is defined as a/an ________ tax.
A) un-American
B) transfer
C) flat
D) none of the above

Question

Quizplus · Accepted Answer

A transfer tax is a type of tax that takes money from one group and redistributes it to another group, usually with the goal of reducing income inequality. This type of tax is often used to fund social programs like welfare or healthcare, which benefit low-income individuals and families. It is considered a form of social redistribution because it transfers income from those who have more to those who have less. Option A, un-American tax is not a valid term, and Option C, flat tax is a tax that charges the same rate to everyone regardless of income and does not involve social redistribution. Option D, none of the above is not a specific answer.

A Tax That Is a Form of Social Redistribution of Income