2015 · Q75
Which one of the following represents a progressive tax structure?
General KnowledgeIndian Economy
- ATax rate is the same across all incomes
- BTax rate increases as income increases
- CTax rate decreases as income increases
- DEach household pays equal amount of tax
Explanation
A progressive tax structure is one in which the tax rate rises as income rises, as in India's income-tax slabs. A constant rate across incomes is proportional, a falling rate is regressive, and an equal lump sum per household is the most regressive arrangement of all. Hence B.