Question

Which type of tax, among progressive, proportional, regressive, and degressive, would you support? Give reasons.

Answer 1

1. Equity and Social Justice: Progressive tax ensures that those who earn more contribute more, which reduces the income gap and promotes economic equality.
2. Ability to Pay Principle: It follows the principle that tax burden should be based on an individual's capacity to pay. It does not overburden the poor.
3. Revenue for Welfare: It allows the government to generate higher revenues from the rich, which can be used for welfare schemes benefiting the underprivileged.
4. Discourages Inequality: It helps reduce concentration of wealth and promotes social welfare.