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Impact on functional efficiency

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Inequality increased substantially in many countries from the 1990s to the 2010s. Suppose the government wants to reverse this and is considering: (i) higher taxes on high-income (top 1%) individuals, (i) taxing the wealth of high-wealth (top 1%) individuals, (iii) high taxes on large (top 1%) inheritances. As a financial analyst, explain which tax would reduce inequality most effectively and with the least adverse impact on functional efficiency. Explain your reasoning in detail.

Reference no: EM132666038

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