When the government implements programs such as progressive income tax rates, which of the following is likely to occur?

Question

When the government implements programs such as progressive income tax rates, which of the following is likely to occur?
	a. Equality is decreased and efficiency is decreased. 	
	b. Equality is decreased and efficiency is increased. 	
	c. Equality is increased and efficiency is increased. 	
	d. Equality is increased and efficiency is decreased.

GPT-4o mini · Answer

When the government implements programs such as progressive income tax rates, the likely outcome is:

d. Equality is increased and efficiency is decreased.

Progressive income tax rates aim to reduce income inequality by taxing higher income individuals at a higher rate, thus redistributing income. However, such taxation can also lead to decreased economic efficiency, as higher tax rates may discourage work, investment, and economic growth.