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Which type of tax increases with the increase in the income of an individual?
  • a)
    Proportional Tax
  • b)
    Progressive Tax
  • c)
    Regressive Tax
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which type of tax increases with the increase in the income of an indi...
  • Progressive tax is a type of tax which is high for high-income earners and less for low-income earners.
  • Regressive Tax is opposite to the progressive tax, that is, the percentage of tax is high for low-income earners (considering their income) compared to high-income earners.
  • A proportional tax is a tax that is same for all the taxpayers irrespective of their income.
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