Question

Under ______ the rate of tax increases with rise in tax payer's income. 

Identify which of the following option is correct?

Under ______ the rate of tax increases with rise in tax payer's income.

पर्याय

• Progressive taxation

• Proportional taxation

• Regressive taxation

• Digressive taxation

Answer 1

Under Progressive taxation the rate of tax increases with rise in tax payer's income. 

Explanation:

1. Under progressive taxation, the rate of tax increases as the taxpayer's income rises.
2. This means that individuals with higher incomes pay a higher percentage of their income in taxes, which is designed to reduce income inequality and ensure that those who have the ability to pay more do so.