is a tax system that collects a greater share of income from those with high incomes than from thos...........

General Studies (CGL) Indian Economy

______ is a tax system that collects a greater share of income from those with high incomes than from those with lower incomes.

This questions was previously asked in

SSC CGL 12th April 2022 Shift-3

Proportional tax

Regressive tax

Payroll tax

Progressive tax

- Progressive tax (Option 4):

- This system takes a larger percentage from high-income earners compared to low-income earners.

- It aims to reduce income inequality.

- Examples include income taxes in many countries.

- Proportional tax (Option 1):

- This system charges the same percentage of income from all taxpayers, regardless of income level.

- Often referred to as a flat tax.

- Regressive tax (Option 2):

- Takes a larger percentage from low-income earners than high-income earners.

- Sales taxes can be an example if basic goods are taxed equally.

- Payroll tax (Option 3):

- Typically a flat tax used to fund social insurance programs.

- Often not dependent on one's income level.

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