In India, very high rates of income tax cause evasion of tax and also discourage incentives to save and…
Kaldor associated high income-tax rates with incentives for tax evasion and weaker incentives to save and invest. A higher marginal tax rate increases the tax saved through…
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In India, very high rates of income tax cause evasion of tax and also discourage incentives to save and invest. Who pointed this out in his recommendations?
Answer and explanation
Correct answer C
Kaldor associated high income-tax rates with incentives for tax evasion and weaker incentives to save and invest. A higher marginal tax rate increases the tax saved through concealment and lowers the after-tax return to income.
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Gujarat SET (GSET)