Redistribution (Economics)
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High Quality Content by WIKIPEDIA articles! High Quality Content by WIKIPEDIA articles! Income redistribution evens the amount of income that individuals are permitted to earn, in order to correct the ineffectiveness of a market economy to remunerate based on the amount of labor expended by an individual. The objective of moderate income redistribution is to avoid the unjust equalization of incomes on one side and unjust extremes of concentration on the other sides. Today, income redistribution occurs in some form in most democratic countries, most commonly through income-adjusted taxes (in wh...
High Quality Content by WIKIPEDIA articles! High Quality Content by WIKIPEDIA articles! Income redistribution evens the amount of income that individuals are permitted to earn, in order to correct the ineffectiveness of a market economy to remunerate based on the amount of labor expended by an individual. The objective of moderate income redistribution is to avoid the unjust equalization of incomes on one side and unjust extremes of concentration on the other sides. Today, income redistribution occurs in some form in most democratic countries, most commonly through income-adjusted taxes (in which the amount of tax paid is directly connected to one's income), some of which goes to fund welfare programs to assist the poor, or to all of society. Progressive income taxes are a widely used method of income redistribution. The difference between the Gini index for an income distribution before taxation and the Gini index after taxation is an indicator for the effects of such a taxation.
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