To fund the redistribution package the government has two options:

Option 1: Impose a new personal income tax structure as follows:

To fund the redistribution package the government has two opt Option 1: Impose a new personal income tax structure as follor Annual Taxable Current Income New Income Tax Income Tax Rate % W First 20 000 Q Q Next 10 000 2 2 Next 10 000 Q i Next 40 000 1 m Next 40 000 L Q Next 40 000 Q E Next 40 000 E g In excess of Q Q m