How does proportional tax differs from progressive tax. – InterviewSolution

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1.

How does proportional tax differs from progressive tax.

Answer»

Proportional tax	Progressive tax
1. The rate of tax remains constant though the tax base changes.	The rate of tax increases as the tax base income
2. It is inequitable, as it falls relatively heavily on poor incomes.	It is equitable as a large part is taxed on higher incomes.

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