Washington’s Millionaires Tax and Income Inequality

Wrong! - A regressive income tax taxes income at an average rate that decreases as income increases. A proportional tax taxes income at a constant rate, regardless of the level of income.

Wrong! - The Millionaires Tax reduces the gap between higher- and lower-income families.

Wrong! - The Millionaires Tax and redistribution decreases income inequality. How does the Lorenz curve change? Does the tax and its redistribution eliminate income inequality?

Wrong! - The Gini ratio is the ratio of the area between the line of equality and the Lorenz curve to the entire area beneath the line of equality What happens to the Gini ratio when income inequality decreases?