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प्रश्न
Which one is better progressive or regressive taxation and why?
संक्षेप में उत्तर
उत्तर
- Progressive taxation is typically thought to be more effective in achieving social equity and fairness. This is because progressive taxes impose a greater burden on those with the financial means to contribute more, decreasing the gap between the rich and the poor. Progressive taxation is considered more equitable.
- In contrast, regressive taxes can worsen income inequality by imposing a disproportionately heavy cost on those who are already struggling financially. This can result in social and economic imbalances, making it a less desirable alternative for promoting fairness and equity in society.
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संबंधित प्रश्न
Instruments of fiscal policy is:
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 |
Differentiate between direct and indirect taxes.
Citing reason state the advantage of a direct tax over an indirect tax.
An indirect tax is not always equitable. Give two reasons to support your answer.
What are progressive taxes.
State two drawbacks of direct taxes.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Discuss four fiscal policy objectives with reference to India.
Differentiate between progressive and regressive taxes giving an example for each.
