Progressive income taxes tend, through redistribution of income, to expand purchasing power.

Question

Quizplus · Accepted Answer

Progressive income taxes apply higher tax rates to individuals with higher incomes, and lower tax rates to those with lower incomes. This redistribution of income results in more money being available for lower-income individuals to spend, which can increase their purchasing power and potentially lead to an overall expansion of the economy.

Progressive Income Taxes Tend, Through Redistribution of Income, to Expand