Respuesta :
Increasing income taxes on the wealthy while increasing welfare payments to the poorest, will likely reduce inequality and reduce efficiency.
What is the effect of an increase in income tax?
Note: The complete question is presented before answering the question as follows:
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.
The answer is now as follows:
An income tax is a tax that is levied against people or organizations based on their earnings.
Increasing income taxes on the wealthy while increasing welfare payments to the poorest, will redistribute wealth and reduce inequality.
However, doing so will reduce the incentive for the wealthy to work to produce more commodities which will result in a reduction in efficiency.
Learn more about income tax here: https://brainly.com/question/17075354.
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