BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Can’t say
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Detailed explanation-1: -Income Tax is a factor payment-False. Factor payments represent the earned income that is typically received by people for the supply production factors like established capital, land, labour, or even enterprising.
Detailed explanation-2: -income tax, levy imposed on individuals (or family units) and corporations. Individual income tax is computed on the basis of income received. It is usually classified as a direct tax because the burden is presumably on the individuals who pay it.
Detailed explanation-3: -Income taxes are a source of revenue for governments. They are used to fund public services, pay government obligations, and provide goods for citizens.
Detailed explanation-4: -The correct answer is d. Regressive tax means when the percentage of income paid in taxes decreases as income increases. A flat tax is a proportional tax as government imposes the same percentage of tax on every individual irrespective of their income.