Tax

====Reduced inequality====
Progressive taxation generally reduces [[economic inequality]], even when the tax revenue is not [[Redistribution of income and wealth|redistributed]] from higher-income individuals to lower-income individuals.<ref>{{Cite web|title=How do taxes affect income inequality?|url=https://www.taxpolicycenter.org/briefing-book/how-do-taxes-affect-income-inequality |date=May 2020 |access-date=22 September 2021|website=Tax Policy Center|language=en}}</ref><ref>{{Cite book|url=https://www.oecd-ilibrary.org/economics/economic-policy-reforms-2012_growth-2012-en|title=Economic Policy Reforms 2012: Going for Growth|date=24 February 2012|publisher=OECD|isbn=978-92-64-16825-1|language=en|doi=10.1787/growth-2012-en |url-status=live |archive-url=https://web.archive.org/web/20231018164559/https://www.oecd-ilibrary.org/economics/economic-policy-reforms-2012_growth-2012-en |archive-date= 18 October 2023 }}</ref> However, in a highly specific condition, progressive taxation increases [[economic inequality]] when lower-income individuals consume [[goods]] and [[Service (economics)|services]] produced by higher-income individuals, who in turn consume only from other higher-income individuals ([[trickle-up effect]]).<ref>{{Cite web|title=Could More Progressive Taxes Increase Income Inequality? |url=https://www.stlouisfed.org/on-the-economy/2020/may/could-more-progressive-taxes-increase-income-inequality|access-date=22 September 2021|website=St. Louis Fed |date=19 May 2020 |first1=Laura |last1=Jackson |first2=Christopher |last2=Otrok |first3=Michael T. |last3=Owyang }}</ref>