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प्रश्न
Citing reason state the advantage of a progressive tax over proportional tax.
संक्षेप में उत्तर
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उत्तर
- Progressive tax systems are created to charge a higher tax rate on persons or businesses with higher incomes, providing a benefit of equity and fairness.
- Proportional tax affects low-income earners and high income earners equally. But a progressive tax has more financial impact on high income earners than on low income earners. That is why a progressive tax is considered better and more fair.
- Example: In a progressive system, a person earning ₹ 100,000 per year may pay 25% in taxes, while someone earning ₹ 30,000 may pay only 10%. A proportionate tax system would require both to pay the same percentage, say 15%, with the lower-income person bearing most of the cost.
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Role of State in Economic Development
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संबंधित प्रश्न
______ is an example of commercial revenues.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
The state can promote economic development by ______.
The major objective of monetary policy is ______.
State two objectives of fiscal policy.
To which tax is this shifting of tax burden relevant?
Give two reasons why the government imposes tax?
Which one is better progressive or regressive taxation and why?
Explain the following with examples:
Progressive tax
With reference to the taxation policy.
Differentiate between progressive and regressive taxes giving an example for each.
