A country's government decides to raise the share of tax revenue it receives from direct taxes and to lower the share it receives from indirect taxes. What is likely to be the effect on the distribution of income and on work incentives?
- Adistribution of income: less equal; work incentives: decrease
- Bdistribution of income: less equal; work incentives: increase
- Cdistribution of income: more equal; work incentives: decrease
- Ddistribution of income: more equal; work incentives: increase