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How does taxation contribute to social welfare?
- a)By encouraging savings and investments
- b)By reducing the tax burden on the rich
- c)By imposing heavy taxes on luxury goods
- d)By increasing income disparities
Correct answer is option 'C'. Can you explain this answer?
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How does taxation contribute to social welfare?a)By encouraging saving...
Taxation contributes to social welfare by imposing heavy taxes on luxury goods, discouraging their consumption, and generating revenue for government programs and services that benefit society as a whole.
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How does taxation contribute to social welfare?a)By encouraging saving...
Imposing heavy taxes on luxury goods:
Taxation plays a crucial role in contributing to social welfare by imposing heavy taxes on luxury goods. This strategy helps in redistributing wealth and reducing income disparities within a society. Here's how:
1. Reducing income inequalities:
By imposing heavy taxes on luxury goods, the government can generate revenue that can be used to fund social welfare programs such as education, healthcare, and social security. This helps in providing support to the less fortunate individuals in society and reduces income inequalities.
2. Promoting social cohesion:
Heavy taxes on luxury goods promote social cohesion by ensuring that the burden of taxation is shared more equitably among all members of society. This helps in creating a sense of fairness and solidarity among citizens, leading to a more cohesive and stable society.
3. Encouraging responsible consumption:
By imposing heavy taxes on luxury goods, the government can discourage excessive consumption of non-essential items and promote more responsible spending habits. This can lead to a more sustainable use of resources and a reduction in the environmental impact of consumption patterns.
In conclusion, imposing heavy taxes on luxury goods is an effective way to contribute to social welfare by reducing income inequalities, promoting social cohesion, and encouraging responsible consumption.
Taxation plays a crucial role in contributing to social welfare by imposing heavy taxes on luxury goods. This strategy helps in redistributing wealth and reducing income disparities within a society. Here's how:
1. Reducing income inequalities:
By imposing heavy taxes on luxury goods, the government can generate revenue that can be used to fund social welfare programs such as education, healthcare, and social security. This helps in providing support to the less fortunate individuals in society and reduces income inequalities.
2. Promoting social cohesion:
Heavy taxes on luxury goods promote social cohesion by ensuring that the burden of taxation is shared more equitably among all members of society. This helps in creating a sense of fairness and solidarity among citizens, leading to a more cohesive and stable society.
3. Encouraging responsible consumption:
By imposing heavy taxes on luxury goods, the government can discourage excessive consumption of non-essential items and promote more responsible spending habits. This can lead to a more sustainable use of resources and a reduction in the environmental impact of consumption patterns.
In conclusion, imposing heavy taxes on luxury goods is an effective way to contribute to social welfare by reducing income inequalities, promoting social cohesion, and encouraging responsible consumption.
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How does taxation contribute to social welfare?a)By encouraging savings and investmentsb)By reducing the tax burden on the richc)By imposing heavy taxes on luxury goodsd)By increasing income disparitiesCorrect answer is option 'C'. Can you explain this answer?
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How does taxation contribute to social welfare?a)By encouraging savings and investmentsb)By reducing the tax burden on the richc)By imposing heavy taxes on luxury goodsd)By increasing income disparitiesCorrect answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How does taxation contribute to social welfare?a)By encouraging savings and investmentsb)By reducing the tax burden on the richc)By imposing heavy taxes on luxury goodsd)By increasing income disparitiesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How does taxation contribute to social welfare?a)By encouraging savings and investmentsb)By reducing the tax burden on the richc)By imposing heavy taxes on luxury goodsd)By increasing income disparitiesCorrect answer is option 'C'. Can you explain this answer?.
How does taxation contribute to social welfare?a)By encouraging savings and investmentsb)By reducing the tax burden on the richc)By imposing heavy taxes on luxury goodsd)By increasing income disparitiesCorrect answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How does taxation contribute to social welfare?a)By encouraging savings and investmentsb)By reducing the tax burden on the richc)By imposing heavy taxes on luxury goodsd)By increasing income disparitiesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How does taxation contribute to social welfare?a)By encouraging savings and investmentsb)By reducing the tax burden on the richc)By imposing heavy taxes on luxury goodsd)By increasing income disparitiesCorrect answer is option 'C'. Can you explain this answer?.
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