The empirical data indicate that the tax system and the transfer programs of the government

Question

Quizplus · Accepted Answer

The empirical data suggest that the tax system and transfer programs of the government tend to reduce the degree of inequality in the distribution of income. The tax system is progressive in nature, meaning that individuals with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. Transfer programs like welfare and unemployment benefits are targeted towards individuals with lower incomes, which helps to reduce income inequality. While there may be some debate on the effectiveness of these programs, the overall trend suggests that they have a leveling effect on income distribution.

The Empirical Data Indicate That the Tax System and the Transfer