How progressive tax structure can help in reducing inequality of income?
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Progressive tax system is the one which puts greater burden on higher income group and lesser burden on lower income group. In other words, the rate of tax increases with increase in income.
It is an effective tool to reduce inequality as lower income groups are required to pay less tax and vice-versa.
It is an effective tool to reduce inequality as lower income groups are required to pay less tax and vice-versa.
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