Question

Taxation is an effective tool to reduce the inequalities of income

Answer 1

Changing the tax system is one way of reducing income inequality and therefore reducing health inequalities. Taxes and benefits have an impact on income being shared more equally between households. Both cash benefits and income tax lead to an overall reduction in income inequality

Answer 2

Explanation: Taxation can be an effective tool to reduce the income inequality because through progressive taxation, the government can intervene to promote equity and reduce inequality and poverty. Progressive tax system means more tax from these on higher levels of income and redistributes welfare benefits to those on lower incomes.

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