When the government taxes income as part of a redistribution program:

Name: When the government taxes income as part of a redistribution program:
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Question

Quizplus · Accepted Answer

When the government taxes income as part of a redistribution program, it diminishes the incentives to earn income for both the rich and the poor. The rich may decide to take their money out of the country or invest in tax shelters, while the poor may choose to work less, as their income is being redistributed. Therefore, choice C is the best option.

When the Government Taxes Income as Part of a Redistribution