Taxation as an effective tool to reduce the inequalities of income - progressive income taxation
The redistribution objective is sought to be achieved through progressive income taxation, in which higher the income, higher is the tax rate.
The government puts a higher rate of taxation on incomes of the rich people and lower rates of taxation on lower income groups.
This will reduce the inequalities of income as the difference between personal disposable incomes of higher income and lower income groups will fall. Hence, inequalities of income will be reduced.