UPSC 1996: A redistribution of income in a country can be best brought about through

Income redistribution is achieved most effectively when the rich are taxed at higher marginal rates (progressive taxation) and the revenue is channelled into programmes that disproportionately benefit lower-income groups (progressive expenditure such as food subsidies, public health and education). This simultaneously reduces post-tax incomes at the top and raises them at the bottom. Combinations involving regressive taxes or regressive spending either leave inequality unchanged or worsen it. ([scribd.com](https://www.scribd.com/document/980823839/Test-17-Solution?utm_source=openai))