A government might use the following policies to redistribute income from high-income earners to low-income earners:
- Negative income tax - This policy provides a cash payment to low-income earners, essentially providing a financial benefit that reduces their tax burden or gives them money, thus redistributing income.
Both food stamps and free and reduced school lunches also serve as income redistribution mechanisms by providing assistance to low-income households, enabling them to afford food and educational needs.
While prescription drug coverage can benefit low-income earners by reducing healthcare costs, it is not specifically designed as an income redistribution policy in the same direct way as the others mentioned.
Therefore, the most direct answer would be negative income tax, but food stamps and free and reduced school lunches also serve that purpose.