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What are progressive taxes. - Economics

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प्रश्न

What are progressive taxes.

What are progressive taxation?

Define progressive taxation.

What is meant by progressive tax?

What is a progressive tax?

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विस्तार में उत्तर
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उत्तर १

A tax is said to be progressive when the rate of tax increases as the taxpayer's income increases.

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उत्तर २

  1. A progressive tax is one in which the tax rate rises in proportion to the taxpayer's income. In this tax system, the tax rate increases with each rise in income. In other words, lesser income is taxed less, and higher income is taxed more.
  2. A progressive tax takes a bigger percentage of a person's income as their income increases. Individuals earning less than 5 lakh per year may be taxed at 10%, while those earning less than 10 lakh per year may be taxed at 30%, and so on.
  3. In the case of progressive taxation, the tax burden increases as income rises, not just in absolute terms (total tax amount) but also as a percentage of income.
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