In the United States

Question

Quizplus · Accepted Answer

The income tax system in the United States does have an impact on the distribution of income, as it is progressive and higher income earners pay a higher percentage of their income in taxes. The after-tax income distribution of income is more equal than the before-tax distribution due to the progressive tax system and government assistance programs. While there may be challenges for individuals in poverty to escape poverty, there are also examples of individuals who have successfully moved out of poverty with the help of education, job training, and other programs. The degree of income mobility in the United States is relatively high compared to other countries.