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Question
Citing reasons state the superiority of Progressive tax over regressive tax.
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Solution
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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RELATED QUESTIONS
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
Which of the statement is true for income tax?
What is meant by shifting of tax burden?
Classify the following type of tax into direct and indirect taxes:
Sales tax
What is meant by regressive taxation?
Give an example of Indirect tax.
State two drawbacks of direct taxes.
Define a tax.
Explain the term Incidence of a tax.
Explain how indirect taxes can be made progressive.
