Many a times we read in the financial newspapers about a term “Progressive Tax System”. Consider the following statements in this context:  Progressive tax is harsher on the poor sections of the society In Progressive tax, average tax rate is less than the marginal tax rate Which among the above statements is / are correct?
Q. Many a times we read in the financial newspapers about a term “Progressive Tax System”. Consider the following statements in this context:  Progressive tax is harsher on the poor sections of the society In Progressive tax, average tax rate is less than the marginal tax rate Which among the above statements is / are correct?
Answer: Only 2 is true
Notes: