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प्रश्न
Citing reasons state the superiority of Progressive tax over regressive tax.
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उत्तर
Progressive tax is better than regressive tax because under a progressive tax system high income earners pay more than low income earners. And under regressive taxation the tax rate deceases as the income levels increases. High tax is collected, from low income earners and low from high income groups.
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संबंधित प्रश्न
Monetary policy means regulation of money supply by the monetary authority.
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
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 Indirect tax
Define a degressive tax.
Citing reason state the advantage of a progressive tax over proportional tax.
An indirect tax is not always equitable. Give two reasons to support your answer.
What are progressive taxes.
Draw a neat labelled diagram for progressive taxation.
State the four merits of a direct tax.
