Question

​​​​does a progressive tax system by itself guarantee that resources will be redistributed from the rich to the poor? Explain. is the tax system in the united states progressive, regressive or proportional? does the tax spending in the united States redistribute resources from higher income earners to lower income earners?

Answer 1

Answer:

No, a progressive tax system by itself doesn't guarantee that resources will be redistributed from the rich to the poor because the redistribution of resources depends on the way in which the tax revenue is being spend on the different sections of the society. If the tax revenue is being spend more on the development of the poor than it will redistribute the resources from rich to poor and if the tax revenue is being spend more on the rich people than it will not redistribute the resources whereas it will widen the gap between the rich and poor.

Yes, the tax system in the united states is progressive. though all the taxes are not progressive because some of state and local level taxes are regressive in nature but federal tax system is progressive. Progressive tax system is the tax system in which the tax rates increases with the increase in the income.  

The tax spending in the united States redistribute resources from higher income earners to lower income earners because the tax system is progressive and the revenue from the taxes is spend more on the poor section of the society