The role of spending and taxation on inequality

IB Economics: The role of spending and taxation on inequality

This lesson continues to focus on the level of income inequality within a country, focusing on the role that progressive taxes play in reducing the level of inequality in the economy. This is a good opportunity to discuss some of the strengths and weaknesses of progressive and regressive tax systems. One of the advantages of a progressive tax system is that the burden of tax falls heaviest on high income earners. ...

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