Answer:
True
Step-by-step explanation:
The State gets money out of charging taxes. If they lower taxes they will have less budget, so they will need to cut on the budget. In this case, if they will lower taxes on the welthiest, then they will have more resources, and be richer.On the other hand, the poorest will be poorer since the state will spend less on them, in conclusion as wealthy people will get richer, and poor people poorer, equality will reduce, since the difference between the tails on the distribution will increase.
On the other side, a financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves the same end, so in this case, tax efficiency will increase
