Question

Suppose in order to fight income inequality a new wealth tax is imposed on billionaires. Based on what we learned from Democrat John F. Kennedy:

a.   The wealth tax will lead to greater tax revenue and will help poor people gain access to more social welfare benefits with no unintended consequences.
b.   The wealth tax will lead to less revenue over time and more income inequality stemming from the slowdown in business and job creation.
c.   The wealth tax will reduce the problem of scarcity for all working poor people.
d.   The wealth tax is an economically inferior solution to reducing income inequality. In fact, lower taxes on income and profit earned by billionaires tends to help the poor more.
e.   B and D only.

Answer 1

The answer is: A). The wealth tax will lead to greater tax revenue and will help poor people gain access to more social welfare benefits with no unintended consequences.
Income inequality, in economics, a significant disparity in the distribution of income between individuals, groups, populations, social classes, or countries. Income inequality is a major dimension of social stratification and social class. It affects and is affected by many other forms of inequality, such as inequalities of wealth, political power, and social status. Income is a major determinant of quality of life, affecting the health and well-being of individuals and families, and varies by social factors such as sex, age, and race or ethnicity.