Question

A government want s to redistribute income from the rich to the poor. Which changes in taxation would help it to achieve this objective?

A) a cut in corporation tax and a rise in sales tax
B) a cut in VAT ans a rise in income tax
C) a cut in capital gains and inheritance tax
D) a rise in customs duties and excise duties
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Answer 1

Answer:

I don't know please leave me

Answer 2

Answer:

The answer is B

Explanation:

VAT is value added tax which is charged on normal products when you buy them which are purchased by the poor and Income tax is mostly paid by the rich. Hence, A cut in Vat and a rise in income tax will help the government to redistribute income from rich to poor