Question
The distribution of income within the borders of a hypothetical country has begun troubling members of Congress. Specifically, the members of Congress are concerned that a very small minority commands a large portion of the country's total GDP. Which of the following methods might the government use to redistribute income from the high-income earners to lower-income earners?(1 point)
Responses
government-provided housing
government-provided housing
Social Security payments
Social Security payments
progressive tax
progressive tax
food stamps
Responses
government-provided housing
government-provided housing
Social Security payments
Social Security payments
progressive tax
progressive tax
food stamps
Answers
GPT-4o mini
The method that the government might use to redistribute income from high-income earners to lower-income earners among the options provided is a **progressive tax**.
A progressive tax system imposes a higher tax rate on higher income levels, which can help redistribute wealth by requiring those who earn more to contribute a larger portion of their income to government revenue. This revenue can then be used to fund social programs that benefit lower-income individuals and families.
While government-provided housing, Social Security payments, and food stamps can also assist in redistributing income and providing support, the progressive tax is specifically designed as a mechanism for income redistribution.
A progressive tax system imposes a higher tax rate on higher income levels, which can help redistribute wealth by requiring those who earn more to contribute a larger portion of their income to government revenue. This revenue can then be used to fund social programs that benefit lower-income individuals and families.
While government-provided housing, Social Security payments, and food stamps can also assist in redistributing income and providing support, the progressive tax is specifically designed as a mechanism for income redistribution.