Question

Which of the following statements best describes the principle of progressive taxation?

Q: Answer-Which of the following statements best describes the principle of progressive taxation?

Progressive taxation means the tax rate increases as the taxpayers income increases, ensuring a more equitable distribution of the tax burden. It is based on the principle of ability to pay and is intended to reduce income inequality.

A Everyone pays the same percentage of income as tax.

B Higher income earners pay a higher percentage of their income as tax.

C Tax is levied uniformly on all goods and services.

D Tax is levied only on consumption and not on income.

E A flat tax rate is applied to all individuals regardless of income.

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Which of the following statements best describes the principle of progressive taxation?

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