CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Taxation as a Tool

Tax rates on ...

Question

Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.

Open in App

Solution

This will reduce the inequalities of income as the difference between disposable incomes of higher income and lower income groups will fall. This will also provide more resource to the government for spending on welfare of the poor.

Suggest Corrections

thumbs-up

0

Similar questions

Govenment raises its expenditure on producing public goods. Which economic value does it reflect? Explain.

Q. Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.

Q. Which of the following best completes the passage below?
One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ___.

Q. Identify the tax system in which the tax rate decreases with increase in income.

A tax is one in which the rate of tax remains the same irrespective of the increase in income level.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Taxation and Fiscal Policy

ECONOMICS

Watch in App

explore_more_icon

Explore more

Taxation as a Tool

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon