Using the Graph Drawn Above, What Could Occur If

question 98

Short Answer

Using the graph drawn above, what could occur if:
i) a government that advocates a flat tax rate to the income distribution.
ii) a government advocates a proportional tax where there are more tax brackets.

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Definitions:

Corporate Profits

The earnings of a corporation after all expenses have been deducted from revenues.

Labor Unions

Organizations formed by workers from related fields that work for the betterment of their members' employment conditions.

Proprietors' Income

Earnings received by owners of unincorporated businesses from their business activities.

Total Income

The combined earnings from wages, investments, and other sources before any deductions are made.