If country A has mostly rich people and country B has mostly poor people and they both have progressive tax systems,we should expect tax revenues to be higher in country A.

Question

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Progressive tax systems mean that those who earn more will be taxed at a higher rate than those who earn less. Since country A has mostly rich people, they will generate more taxable income and, therefore, more tax revenue for the government. Country B, on the other hand, with mostly poor people, will have lower taxable income and, therefore, lower tax revenue.

If Country a Has Mostly Rich People and Country B