Taxation and distribution of income

Discuss how a government might use taxation to affect the distribution of income. [6]
           Redistribution of income is a very important aim of the government. They use taxation to reduce inequalities in the distribution of income between people. Firstly, the possible system is that government can use the progressive tax system where the higher income groups have to pay more percentage of their income as tax compared with the lower income groups. This method is very fair to distribute the income equally between all the people. Secondly indirect taxes are imposed for spending on goods and services. Some of the goods and services are very popular among the people especially rich people. So, taking higher tax from them could be a reasonable way to redistribute the income.