______ is a tax system that collects a greater share of income from those with high incomes than from those with lower incomes.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Progressive tax.
Other Information-
- A progressive tax is a tax system that collects a greater share of income from people with higher incomes than from those with lower incomes.
- A progressive tax is a tax whose rate increases as income increases.
- In progressive tax, tax is levied at a lower rate at a lower income level and at a higher rate at a higher income level.
- For example, income tax is levied at a lower rate on low-income persons and at an increased rate on high-income persons.
- A progressive tax system helps in maintaining economic equality and stability in society due to its favorable taxation capacity.