Ignoring taxes when making redistributive decisions has no impact on equity.

Question

Quizplus · Accepted Answer

Ignoring taxes when making redistributive decisions can have a significant impact on equity. Taxes are a tool for redistributing wealth by collecting money from high-income earners and using it to provide services and support for low-income earners. Ignoring taxes can result in inequitable outcomes, where the burden of the social welfare system is borne by those who can least afford it. For example, if a government decides to provide health care for all citizens, but funds it by raising sales taxes, then the poor will pay a higher percentage of their income towards that health care than the rich. Including taxes in redistributive decisions is critical to ensuring that the system is fair and accessible to all.

Ignoring Taxes When Making Redistributive Decisions Has No Impact on Equity