ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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regressive tax
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income tax
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progressive tax
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corporate income tax
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Detailed explanation-1: -Taxes like sales tax, fuel tax, excise tax, social security payroll fall under the purview of regressive taxes.
Detailed explanation-2: -Among many others, examples of a regressive tax include: Sales Tax. Property Tax. Excise Tax.
Detailed explanation-3: -What is Regressive Tax. Definition: Under this system of taxation, the tax rate diminishes as the taxable amount increases. In other words, there is an inverse relationship between the tax rate and taxable income. The rate of taxation decreases as the income of taxpayers increases.
Detailed explanation-4: -However the confusion still remains as although on principle GST is a regressive tax, steps taken by the lawmakers has given it some character of a progressive tax.