1. Progressive taxation: The government can introduce a progressive tax system, wherein individuals or households with higher incomes are taxed at a higher rate than those with lower incomes. By implementing this measure, the government can ensure that wealthier individuals contribute a larger portion of their income towards taxes, which can be used to support social welfare programs aimed at reducing inequality and redistributing wealth.
2. Social welfare programs: The government can implement or expand social welfare programs such as cash transfers, education subsidies, healthcare services, or housing initiatives that specifically target low-income individuals or households. These programs aim to provide financial assistance and meet basic needs for those living in poverty, consequently redistributing wealth from higher income individuals to those with lower incomes who may have limited access to resources or opportunities.
Name Two fiscal policy measures that can be implemented to redistribute wealth in South Africa.
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