6.6Tax Policy and Income DistributionAP MicroeconomicsTypes of taxesProgressive taxesWorked exampleWhy sales taxes are regressiveTransfer paymentsThe equity–efficiency trade-offConnection to the Lorenz Curve••AP Exam Tips••••Common Mistakes••••Unit 6 topicsUnit 6 overview6.1Socially Efficient and Inefficient Market Outcomes6.2Externalities6.3Public and Private Goods6.4The Effects of Government Intervention in Markets6.5Income Inequality and the Lorenz Curve6.6Tax Policy and Income Distribution6.7Market Failure and Government Failure← Previous6.5 Income Inequality and the Lorenz CurveNext →6.7 Market Failure and Government FailurePractice AP Microeconomics questions →