Question

Rate the revenue sources from most to least progressive

Answer 1

As we know that progressive tax system is a tax system in which our taxable amount keeps on increasing . Progressive tax system is basically put to have lower taxes for poor and higher taxes for rich people of the society . the main goal is to reduce the burden of tax from lower income groups .

So as , rate of revenues increases , progressive tax on those revenue will also rises , because of the continuous rise in the income . So generally in progressive tax system , average tax rate is lower than the marginal tax rate . So Rate of the revenues does not increase by that rate at which person wants because of imposition of progressive taxes . Hence rate of revenue first increases at increasing rate and then at decreasing rate and finally starts falling . Remember that it's rate of revenue not revenue , Revenue will keep on increasing .