Question
Distinguish between Progressive and Proportional taxation.
| Progressive Taxation | Proportional Taxation |
| 1. Under it, the rate of tax increases with the rise in tax payer's income as the tax base increases. | 1. Under it, the rate of tax remains constant as the tax base changes. |
| 2. It is more equitable as it falls heavily on higher incomes. | 2. It is inequitable as it falls heavily on the poor. |
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