How a government might use taxation to affect the distribution of income

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Business

Carlo Escobar

16 March, 20:25

How a government might use taxation to affect the distribution of income

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Cale Schultz · Answer 1

The government uses taxation in order to control the distribution of the income of the people in the country. For example, they can increase the tax paid in order for the income to decrease (because of the tax deductions) and it could go the other way too (if tax is decreased, income increases).