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Question
Progressive taxation refers to a tax system in which there is:
Options
The same tax rate on all income levels
A higher tax on higher income
No tax on any income
A higher tax on lower income
MCQ
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Solution
Under progressive taxation, the tax burden rises with income — those earning higher incomes pay a higher tax. This narrows income disparities and supports the redistribution objective of the government budget.
shaalaa.com
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