Progressive taxation has a direct effect on reducing income inequality.[1] This is especially true if taxation is used to fund progressive government spending such as transfer payments and social safety nets.[2] However, the effect may be muted if the higher rates cause increased tax evasion.[13][23] When income inequality is low, aggregate demand will be relatively high, because more people who want ordinary consumer goods and services will be able to afford them, while the labor force will not be as relatively monopolized by the wealthy.[24][25] High levels of income inequality can have negative effects on long-term economic growth, employment, and class conflict.[26][27] Progressive taxation is often suggested as a way to mitigate the societal ills associated with higher income inequality.[12] The difference between the Gini index for an income distribution before taxation and the Gini index after taxation is an indicator for the effects of such taxation.[28]