Which of the following tax systems would help reduce income inequality the most?

Question

Quizplus · Accepted Answer

A progressive tax system is designed to tax higher-income individuals at a higher percentage rate than lower-income individuals. This means that those who can afford to pay more in taxes will pay more, helping to reduce income inequality. Regressive and proportional tax systems, on the other hand, tend to disproportionately affect lower-income individuals, exacerbating income inequality. A consumption tax system is also regressive in nature, as it taxes a larger percentage of income for those with lower incomes.

Which of the Following Tax Systems Would Help Reduce Income