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Scenario:

Progressive tax system is directly related with the income of all individuals. Progressive tax increases as the income of a person increases and vice versa. Policy makers have different perspectives towards progressive taxation that shows its impact on the economic development process. One of them is that progressive tax system helps to reduce income inequality. Others viewed it disincentive to hard work.

 

Discussion Questions:

  1. Do you think progressive tax system helps to reduce income inequality and have an impact on the economic development of a country? Explain.
  2. By keeping in mind both views suggest which view is more constructive.

 

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