income redistribution

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income redistribution

a policy concerned with altering the pattern of the PERSONAL DISTRIBUTION OF INCOME in an economy, mainly with social rather than economic objectives in mind. The general aim of such a policy is to achieve a more equitable distribution of income as between the various sections of the community so as to ensure that everybody is provided with some minimum STANDARD OF LIVING. The transfer of income from one section of the community to another is achieved primarily by the use of a PROGRESSIVE TAXATION system and a variety of welfare provisions (subsidized housing, old age pensions, etc).

See ABILITY-TO-PAY PRINCIPLE OF TAXATION, REDISTRIBUTION-OF-INCOME PRINCIPLE OF TAXATION, WEALTH TAX.