Question

What are some advantages of having a graduated income tax? Select all that apply.

a. Dividing people into tax categories
b. Higher income paying a higher tax rate
c. More income for the government
d. More money available for lower-income spending
e. Very few people paying the highest rate of tax

Answer 1

Advantages of a graduated income tax system include dividing people into tax categories, higher income individuals paying a higher tax rate, generating more income for the government, and providing more funds for lower-income spending.

Step-by-step explanation:

Having a graduated income tax system has several advantages:

1. Dividing people into tax categories: A graduated income tax system allows individuals to be divided into different tax brackets based on their income levels. This ensures that those who earn higher incomes are subject to higher tax rates.
2. Higher income paying a higher tax rate: In a graduated income tax system, individuals with higher incomes pay a higher percentage of their income in taxes. This helps distribute the tax burden more fairly, as those with more financial resources are able to contribute more to government revenue.
3. More income for the government: Graduated income taxes can generate more revenue for the government compared to a flat tax system, as higher-income individuals contribute a larger share of their income.
4. More money available for lower-income spending: By taxing higher-income individuals at a higher rate, a graduated income tax system can provide more funding for government programs aimed at supporting lower-income individuals and addressing socioeconomic inequalities.