Question

Assertion (A): Progressive taxation is universally accepted as an ideal tax system.

Reason (R): It helps in reducing inequalities of income and wealth.

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Progressive taxation is universally regarded as an ideal tax system because it imposes a higher burden on the rich and thereby helps in reducing inequalities of income and wealth.