Question

tax on income and tax on goods- which of these two affects rich the most and which affect the poor most? give reasons for your answer
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Answer 1

Answer:

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Explanation:

First, if new tax revenues from the rich are used to pay for increased stimulus for poorer Americans, on net that will stimulate the economy by increasing overall spending. Since the poor spend more of each additional dollar than do the rich, increasing the progressivity of our tax system increases aggregate demand.

Answer 2

Answer:

Because high-income households pay a larger share of their income in total federal taxes than low-income households, federal taxes reduce income inequality. But federal taxes have done little to offset increasing income inequality over the past 40 years.Income inequality has increased sharply over the past 40 years. A simple way to measure inequality is by looking at the share of income received by the highest-income people. Using a broad measure that includes labor, business, and capital income; and government social insurance benefits (such as Social Security, Medicare, and unemployment insurance), the Congressional Budget Office finds that the fifth of the population with the highest income saw their share rise from 46 to 54 percent between 1979 and 2016 (figure 1). This increase in income inequality came about despite the growth in Social Security and Medicare, which boost before-tax income for low- and middle-income households.

Explanation:

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