Whats the right answer
Which of the following policies might a government use to redistribute income from high-income earners to low-income earners?(1 point)
Responses
prescription drug coverage
prescription drug coverage
negative income tax
negative income tax
free and reduced school lunches
free and reduced school lunches
food stamps
All of the options listed (prescription drug coverage, negative income tax, free and reduced school lunches, and food stamps) can be considered policies that a government might use to redistribute income from high-income earners to low-income earners.
The policy that a government might use to redistribute income from high-income earners to low-income earners is a negative income tax.
Whats the most likely though
The most likely policy that a government might use to redistribute income from high-income earners to low-income earners is the negative income tax. This policy involves providing financial assistance to low-income individuals or households through providing them with a payment instead of taxing them. This ensures that their income is supplemented and gives them a greater disposable income.
The right answer is "negative income tax."
To find the right answer, let's break down the options provided:
1. Prescription drug coverage: This policy provides financial assistance for purchasing prescription medications. While it may benefit low-income earners, it does not directly redistribute income from high-income earners to low-income earners.
2. Negative income tax: This policy involves providing direct payments or subsidies to individuals or families whose income falls below a certain threshold. It essentially redistributes income from high-income earners through a tax system that provides assistance to low-income earners.
3. Free and reduced school lunches: This policy provides school meals at little to no cost for students from low-income families. Although it aids low-income earners, it does not directly redistribute income from high-income earners.
4. Food stamps: Also known as the Supplemental Nutrition Assistance Program (SNAP), food stamps provide electronic benefits to eligible low-income individuals and families for purchasing food. While this policy assists low-income earners, it is not specifically targeted at redistributing income from high-income earners.
Given the options provided, the policy that directly addresses redistributing income from high-income earners to low-income earners is "negative income tax."