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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can the Government intervene via Progressive Taxation help tackle Poverty

Author: eric_galvao



Answer:

-PT means a Bigger % of tax comes from Workers with Higher Incomes than those with Lower Incomes. This Reduces the Difference between People's Disposable Income, reducing Relative Poverty -PT though can Contribute to the Poverty Trap. Furthermore, if High Income Earners are Taxed too much, they move to another Nation where they're taxed less. This results in a Loss of Labour and Money from the Economy


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