Government action through taxes can be a smart way to help reduce the gap between rich and poor people. Here are some important points to consider:

1. Progressive Taxation:

   • A progressive tax system means that the more money someone makes, the higher percentage of their income they have to pay in taxes.
   • For example, in Sweden, the highest earners can pay more than 50% of their income in taxes.
   • This system takes money from wealthier people and helps those who have less, making the income difference smaller.

2. Income Inequality Statistics:

   • The OECD reports that Sweden has a Gini coefficient of about 0.28. This number shows that Sweden has less income inequality than many other countries.
   • One reason for this is that Sweden collects a lot of taxes, about 44% of its total wealth, which helps fund programs that support everyone.

3. Public Services:

   • The money from taxes pays for important services like schools and healthcare, which help lower-income families directly.
   • Better education can lead to more job opportunities and higher incomes for people from less advantaged backgrounds.

4. Long-Term Benefits:

   • A good tax policy can create a fairer society, which helps lower poverty rates that usually affect the most vulnerable people.
   • In Sweden, about 10% of people live in poverty, but targeted tax help can greatly improve living conditions for families with low incomes.