ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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death tax
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sales tax
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federal income tax
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corporate income tax
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Detailed explanation-1: -GST is an example of proportional tax where everyone pays the same tax irrespective of the income group.
Detailed explanation-2: -Sales Tax is a form of tax paid to a governing body for the sale of goods and services. Sales tax is an indirect tax and is generally charged at the point of buy or exchange of certain taxable goods, charged as a percentage of the value of the product.
Detailed explanation-3: -Proportional Tax In this system, a flat tax is levied regardless of income of wealth. One example of corporation tax in India whereby government charges a flat rate of 30% on the income earned by the companies in India.
Detailed explanation-4: -What Is a Proportional Tax? A proportional tax is an income tax system that levies the same percentage tax to everyone regardless of income. A proportional tax is the same for low, middle, and high-income taxpayers. Proportional taxes are sometimes referred to as flat taxes.
Detailed explanation-5: -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.