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Question
Explain the following with examples:
Progressive tax
Answer in Brief
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Solution
- A tax is said to be progressive when the rate of tax increases as the taxpayer's income increases.
- Examples of progressive tax are income tax, and estate tax.
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Role of State in Economic Development
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Chapter 6: The State and Economic Development - QUESTIONS [Page 168]
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RELATED QUESTIONS
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
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 |
Distinguish between fiscal policy and monetary policy.
To which tax is this shifting of tax burden relevant?
Explain the term proportional taxation.
Give two reasons why the government imposes tax?
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
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Environmental protection.
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Explain the significance of taxes.
