a) Why do you think we should use taxation as a redistribution tool in a country?b) Discuss whether kind payments and cash payments is better regarding indivual’s utility when helping the poor?

Answered: a) Why do you think we should use…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Income Inequality And Poverty

Section20.2: The Political Philosophy Of Redistributing Income

Problem 2QQ

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a) Why do you think we should use taxation as a redistribution tool in a country?
b) Discuss whether kind payments and cash payments is better regarding indivual’s utility when helping the poor?

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Meaning of Tax Imposition:

The term tax imposition or the tax hike refers to the situation under which the central authority or the government increases the tax slabs further from the original state, thus the tax imposition forces the individuals to pay more and extra from their income to the government.