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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
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
______ is an example of commercial revenues.
______ are those taxes which are paid by the same person on whom they have been imposed.
Which of the following is an advantage of direct taxes?
An indirect tax is not always equitable. Give two reasons to support your answer.
Give one example of progressive tax.
Explain how indirect taxes can be inflationary.
How does the state fulfil the following socio-economic objective?
Environmental protection.
State the four merits of a direct tax.
Explain the term Incidence of a tax.
Explain the following with examples:
Progressive tax
