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Consider the following statements about progressive taxation.
1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state
2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the society
Which of these statements is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)None of them
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements about progressive taxation.1. In thi...
Both the statements are correct.
Statement 1: With a progressive tax system, those who earn less are taxed less. Those who earn more are taxed more. Since the top earners are taxed more and on larger sums of money, a progressive tax also increases the amount of tax revenue coming in.
Statement 2: Governments redistribute the resources to the poorer people across the society with increase amount of tax revenue coming in.
Statement 1: With a progressive tax system, those who earn less are taxed less. Those who earn more are taxed more. Since the top earners are taxed more and on larger sums of money, a progressive tax also increases the amount of tax revenue coming in.
Statement 2: Governments redistribute the resources to the poorer people across the society with increase amount of tax revenue coming in.
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Most Upvoted Answer
Consider the following statements about progressive taxation.1. In thi...
Progressive taxation is a method of taxation where the tax rate increases as the income or wealth of individuals or corporations increases. This system is designed to ensure that those who earn higher incomes or accumulate more wealth contribute a larger proportion of their income or wealth to the state in the form of taxes.
Statement 1: In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state
This statement is correct. Progressive taxation aims to impose higher tax rates on higher income brackets. As a result, corporations and the wealthiest individuals, who generally earn higher incomes, have to pay a larger portion of their incomes as taxes. This helps in ensuring that the burden of taxation is distributed more fairly and proportionately based on the ability to pay.
Statement 2: The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the society
This statement is also correct. The progressive tax system generates higher tax revenues from individuals and corporations with higher incomes. These increased tax revenues can be utilized by the government to fund social welfare programs, provide public services, and implement policies aimed at reducing income inequality. The redistribution of resources through government spending can help in addressing the needs of the poorer sections of society by providing them with better access to education, healthcare, housing, and other essential services.
Therefore, both statements 1 and 2 are correct.
Progressive taxation has several advantages, including:
1. Equity and fairness: Progressive taxation ensures that individuals and corporations with higher incomes contribute a larger share of their income to the state. This helps in reducing income inequality and promoting social justice.
2. Revenue generation: The progressive tax system generates higher tax revenues from those who can afford to pay more. This additional revenue can be used by the government to fund various public programs and services, such as infrastructure development, healthcare, education, and social security.
3. Redistribution of wealth: By redistributing resources from the wealthier individuals and corporations to the poorer sections of society, progressive taxation helps in reducing poverty and improving the overall welfare of the population.
4. Economic stability: Progressive taxation can help in reducing income disparities, which in turn can contribute to a more stable and sustainable economy. When wealth is more evenly distributed, it can lead to increased consumer spending, higher levels of economic activity, and reduced social tensions.
5. Flexibility: The progressive tax system allows for adjustments in tax rates based on changing economic conditions and social needs. Governments can increase or decrease tax rates for different income brackets as required, ensuring that the tax system remains responsive and adaptable.
Overall, progressive taxation plays a crucial role in promoting social justice, reducing income inequality, and providing the government with the necessary resources to address the needs of the society.
Statement 1: In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state
This statement is correct. Progressive taxation aims to impose higher tax rates on higher income brackets. As a result, corporations and the wealthiest individuals, who generally earn higher incomes, have to pay a larger portion of their incomes as taxes. This helps in ensuring that the burden of taxation is distributed more fairly and proportionately based on the ability to pay.
Statement 2: The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the society
This statement is also correct. The progressive tax system generates higher tax revenues from individuals and corporations with higher incomes. These increased tax revenues can be utilized by the government to fund social welfare programs, provide public services, and implement policies aimed at reducing income inequality. The redistribution of resources through government spending can help in addressing the needs of the poorer sections of society by providing them with better access to education, healthcare, housing, and other essential services.
Therefore, both statements 1 and 2 are correct.
Progressive taxation has several advantages, including:
1. Equity and fairness: Progressive taxation ensures that individuals and corporations with higher incomes contribute a larger share of their income to the state. This helps in reducing income inequality and promoting social justice.
2. Revenue generation: The progressive tax system generates higher tax revenues from those who can afford to pay more. This additional revenue can be used by the government to fund various public programs and services, such as infrastructure development, healthcare, education, and social security.
3. Redistribution of wealth: By redistributing resources from the wealthier individuals and corporations to the poorer sections of society, progressive taxation helps in reducing poverty and improving the overall welfare of the population.
4. Economic stability: Progressive taxation can help in reducing income disparities, which in turn can contribute to a more stable and sustainable economy. When wealth is more evenly distributed, it can lead to increased consumer spending, higher levels of economic activity, and reduced social tensions.
5. Flexibility: The progressive tax system allows for adjustments in tax rates based on changing economic conditions and social needs. Governments can increase or decrease tax rates for different income brackets as required, ensuring that the tax system remains responsive and adaptable.
Overall, progressive taxation plays a crucial role in promoting social justice, reducing income inequality, and providing the government with the necessary resources to address the needs of the society.
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Consider the following statements about progressive taxation.1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the societyWhich of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements about progressive taxation.1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the societyWhich of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about progressive taxation.1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the societyWhich of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about progressive taxation.1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the societyWhich of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements about progressive taxation.1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the societyWhich of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about progressive taxation.1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the societyWhich of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about progressive taxation.1. In this method of taxation corporations and the richest individuals pay more tax on their incomes to the state2. The increased incomes from tax on income enables the governments to redistribute resources to the poorer people across the societyWhich of these statements is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'C'. Can you explain this answer?.
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