Which of the following statements is true in case of the principle of equal marginal sacrifice ?
Equal marginal sacrifice requires the marginal utility of income remaining after taxation to be equal across taxpayers. Equal absolute sacrifice instead concerns equality in…
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Which of the following statements is true in case of the principle of equal marginal sacrifice ?
Answer and explanation
Correct answer C
Equal marginal sacrifice requires the marginal utility of income remaining after taxation to be equal across taxpayers. Equal absolute sacrifice instead concerns equality in the total utility lost through taxation.
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Maharashtra and Goa SET (MH SET)