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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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संबंधित प्रश्न
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
Identify the tax which is most likely to faster civic conciousness.
Wealth tax is an example of:
Match the following:
| Column I | Column II | ||
| A. | Impact of tax | (i) | Price stability |
| B. | Incidence of tax | (ii) | Simple to calculate |
| C. | Objective of Monetary Policy | (iii) | Ultimate burden of tax |
| D. | Proportional tax | (iv) | Original imposition of tax |
Define direct tax
Classify the following type of tax into direct and indirect taxes:
Sales tax
Explain clearly tour ways by which the state can promote economic growth and development.
State the four merits of a direct tax.
Explain the term Impact of a tax.
Explain the significance of taxes.
