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Question
Citing reasons state the superiority of Progressive tax over regressive tax.
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 essential feature of a tax.
Under ______ the rate of tax increases with rise in tax payer's income.
Match the following:
| Column I | Column II | ||
| A. | Impact of tax | (i) | Price stability |
| B. | Incidence of tax | (ii) | Simple to calculate |
| C. | Objective of Monetary Policy | (iii) | Ultimate burden of tax |
| D. | Proportional tax | (iv) | Original imposition of tax |
Name any two instruments of Fiscal Policy.
Give an example of Indirect tax.
Give two reasons why the government imposes tax?
Discuss four fiscal policy objectives with reference to India.
State the following:
Three demerits of an Indirect tax.
Explain the following with examples:
Progressive tax
Differentiate between progressive and regressive taxes giving an example for each.
