JAMB - Economics (1981 - No. 39)
Progressive income tax can be expressed as
tax that falls as income rises
tax that rises as income falls
tax that is independent of income
tax that rises as income rises
tax that is neutral to income
Explanation
A progressive tax takes a larger percentage of income from people with larger income. It reduces inequality of income from people with larger incomes. It reduces inequality of income distribution eg Pay As You Earn (P.A.Y.E.)
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