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Alevel economics essay asap help!
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Preyankan23
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does anyone have any ideas of possible points or arguments and any relevant diagrams I can use for this question on "to what extent does tax and benefit reduce inequality" - it's a 25 marker.
Any help would be much appreciated
Any help would be much appreciated
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Taz.
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- Progressive tax rates can help to reduce inequality as the rich will get taxed more than the poor, reducing inequality (Diagram: Lorenz Curve)
- Benefits can help to reduce inequality as the financial aid from the government to those with low or no income can improve purchasing power and improve living standards
- Benefits, however, can also increase levels of inequality by encouraging some to leave the labour market due to the incentive of higher levels of income from benefits, if benefit levels are too high and easy to access. It will increase levels of inequality as the low-skilled and low payed workers are likely to earn even less from benefits, increasing the pay gap between the highest earning and the lowest earning.
Hope this helps!
- Benefits can help to reduce inequality as the financial aid from the government to those with low or no income can improve purchasing power and improve living standards
- Benefits, however, can also increase levels of inequality by encouraging some to leave the labour market due to the incentive of higher levels of income from benefits, if benefit levels are too high and easy to access. It will increase levels of inequality as the low-skilled and low payed workers are likely to earn even less from benefits, increasing the pay gap between the highest earning and the lowest earning.
Hope this helps!
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