What is the distribution of income after taxes and benefits

Reference no: EM131404006

Suppose that the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income.
If the cost of administering the redistribution scheme takes 50 percent of the taxes collected, what is the distribution of income after taxes and benefits?

Reference no: EM131404006

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