Which types of tax helps in reducing disparities of income ?
A progressive tax takes a larger average proportion of income as income rises, so it can reduce income inequality. Marginal rates need not rise with every additional rupee:…
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Which types of tax helps in reducing disparities of income ?
Answer and explanation
Correct answer B
A progressive tax takes a larger average proportion of income as income rises, so it can reduce income inequality. Marginal rates need not rise with every additional rupee: they may remain constant within tax bands.
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Rajasthan SET (RSET)