Overview
Taxation policy plays a crucial role in shaping social equity by determining how resources are collected and distributed within society. A fair taxation system can help reduce income inequality and provide essential services to those in need. Understanding the different types of taxation, such as pr...
Key Terms
Example: Higher earners pay a larger percentage of their income in taxes.
Example: Sales taxes that take a larger percentage from low-income earners.
Example: A $1,000 tax credit reduces your tax bill by $1,000.
Example: Food stamps and unemployment benefits.
Example: Progressive taxation is a method of income redistribution.
Example: Mortgage interest can be deducted from taxable income.