Income redistribution

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Income redistribution, or the redistribution of wealth, is a political policy usually promoted by members of the political left, and opposed, or less strongly supported, by members of the political right. The basic premise of the redistribution of wealth is that money should be distributed so it benefits all members of society, and that the rich should be obliged to assist the poor. Thus, money should be redistributed from the rich to the poor, creating a more financially egalitarian society.

Income redistribution occurs in some form in most liberal democracies, most commonly through progressive taxation, where the amount of tax paid as a percentage of income increases as income increases. Some of the tax revenues are then used to fund welfare programs.

Opponents of redistribution argue that it punishes good economic activity whilst rewarding poor economic activity, resulting in an inefficient economy, or that it infringes on one's right to enjoy the fruit of one's labor. They also argue that it will result in a brain drain, and lead to a state where the middle class have to support a large population of unemployed with an ever-increasing percentage of their income, because, it is argued, a slowdown in economic activity will result in higher taxes unless spending is curtailed. Others argue that income redistribution in practice, actually widens the gap between the rich and the poor.

Proponents of redistribution argue from the Marxian standpoint that wealthier people are exploiting the poor or otherwise gaining unfair benefits, therefore necessitating redistributive practices in order to redress the imbalance. Others argue that income differences in free economies are unfair, and must be remedied through taxation to fund welfare programs for those with lower incomes.

See also

• Welfare (financial aid)
• Redistribution
• Social equality
• Income distribution

External links

• [''The Main Issue] by D. G. Lesvic - argues that wealth redistribution widens the gap between the rich and the poor ([a prize is being offered to anyone who can refute it])

 

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