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If the United States government raises the income taxes on the wealthiest Americans, while increasing welfare payments to the poorest Americans, the result will likely be (increase/decrease) in efficiency and (increase/decrease) in equality in the United States.

Please determine if it is increase or decrease.

Respuesta :

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Answer:

Decrease in efficiency/ increase in equality

Explanation:

This policy is aimed at increasing equality since the difference in the after tax income between the wealthy and the poor would narrow, which implies in a more economically equal economy. However, the increase in taxes reduces the incentives for the wealthy to increase production and could scare away possible foreign investors looking for more tax-friendly opportunities, therefore, those measures decrease efficiency.

Decrease in efficiency/ increase in equality

The following information should be considered:

  • This policy should be focused on increasing equality because there is the difference in the after tax income between the wealthy and the poor.
  • But the increase in taxes decreased the incentives for the wealthy to increase production.

Learn more: https://brainly.com/question/4804019?referrer=searchResults

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