Why might a government utilize progressive taxation?

The rationale behind a government utilizing progressive taxation primarily stems from its ability to provide relief to lower-income individuals. Progressive taxation is structured so that tax rates increase as an individual's income rises. This means that higher earners pay a larger percentage of their income in taxes compared to those with lower incomes. The intention is to distribute the tax burden more equitably across different income levels, which helps reduce economic disparity.

By imposing higher tax rates on the wealthier segments of the population, the government can generate more revenue while alleviating the financial burden on lower-income earners. This system allows for greater investment in social programs, public services, and welfare initiatives that directly benefit those who may be struggling financially. As a result, progressive taxation plays a crucial role in promoting economic fairness and supporting the overall well-being of less affluent individuals.

In contrast, the other options do not accurately reflect the primary purpose of progressive taxation. Simplifying tax codes is more related to administrative efficiency rather than addressing income inequality. Attracting foreign investments typically involves creating favorable business environments, which is not directly connected to the income tax structure. Lastly, while taxation can have an indirect effect on inflation, the main goal of progressive taxation is not to tackle inflation but to ensure a fair distribution of