Question

because governments redistribute income through the ________ budget, after-tax income distribution is ________ equal that the income distribution before taxes were paid and public services provided

Answer 1

Governments use the fiscal budget for redistribution, which makes after-tax income distribution more equal by using welfare programs and a progressive tax system.

Step-by-step explanation:

Because governments redistribute income through the fiscal budget, after-tax income distribution is more equal than the income distribution before taxes were paid and public services provided. Redistribution involves taking income from those with higher incomes and providing income to those with lower incomes, often through various welfare programs and a progressive tax system.

Key policies that support this include the Temporary Assistance for Needy Families (TANF), the Earned Income Tax Credit, the Supplemental Nutrition Assistance Program (SNAP), and Medicaid. A progressive tax system ensures that the rich pay a higher percentage of their income in taxes, which aids in reducing income inequality.