Tax cuts are a contentious political issue. Some politicians argue that tax cuts tend to benefit people with higher incomes more than those with lower incomes. An economist would say that these opponents to tax cuts are concerned with the ___ of the tax cuts.

Question

Social Studies

Norris

5 December, 15:16

Tax cuts are a contentious political issue. Some politicians argue that tax cuts tend to benefit people with higher incomes more than those with lower incomes. An economist would say that these opponents to tax cuts are concerned with the ___ of the tax cuts.

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Answers (1)

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Amaris Daugherty · Answer 1

Equity (fair).

Explanation:

Tax cut in usual term is demonstrated as the rebate or reduction in the tax rate paid by the citizens to the government. Tax cuts are often considered as controversial political issue as some of the politicians assert that these cuts tend to serve more as a gain for the higher-income as compared to the lower-income groups which economists would categorize as a step taken in regard to establish the 'equity' among the tax rates. Because it becomes quite impartial or unfair to charge a higher tax rate from the higher-income groups and lesser from the lower-income groups. Therefore, the step is in regard to 'equity'.