Question

What has increased more over time: pre-tax income inequality, after-tax income inequality, or post-after-and-transfer income inequality??

Answer 1

Pre tax income inequality has increased over time when compared to the after tax income inequality or post after and transfer inequality. In most of the nation's through GINI coefficient it is determined that the income inequality tends to reduce post transfer and taxes since the government across nations tend to use taxes and transfers as a means to redistribute the resources. Also the reduction through taxes and transfer varies greatly across nation countries like Sweden and Denmark tend to reduce inequality by upto 39%post redistribution whereas US this number standa at 17%.