Question

A __________________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes

Answer 1

Answer:

The correct answer is a progressive tax policy.

Explanation:

A progressive tax policy means higher tax rates for people with higher incomes. Tax rates are based on the tax payers' ability to pay. Lower taxes are charged from people with lower incomes. It is helpful in income redistribution.

People with lower income share a higher portion of their income on basic necessities as compared to people with higher income levels.