Advertisements
Advertisements
Questions
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.
Options
Progressive taxation
Proportional taxation
Regressive taxation
Digressive taxation
Advertisements
Solution
Under Progressive taxation the rate of tax increases with rise in tax payer's income.
Explanation:
- Under progressive taxation, the rate of tax increases as the taxpayer's income rises.
- 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.
RELATED QUESTIONS
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Which one is better progressive or regressive taxation and why?
Draw a neat labelled diagram for progressive taxation.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Define a tax.
Explain the term Impact of a tax.
Give two examples of direct taxes.
Explain briefly two merits of indirect tax.
Define the following term:
Fiscal deficit
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
