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Question

The taxation system helps the government fight the biggest problem of inequalities in income.

A
regressive
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B
progressive
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C
proportional
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D
indirect
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Solution

The correct option is B progressive
The progressive taxation system helps the government fight the biggest problem of inequalities in income. It charges more taxes from the rich and uses that money for providing food, schooling, and other facilities to the poor. The government also changes the tax rates for regional development, controlling inflation and regulating the foreign trade.

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