Q. 145.0( 2 Votes )
Taxation is an important fiscal measure that can be used to reduce the gap between the rich and the poor. Tax is the compulsory payment that has to be made to the government. A progressive system of taxation in which the people are taxed on the basis of their ability to a will help in reducing the income disparity. In such a system, the rich will be taxed more and the poor will be taxed less. This can be used to reduce the gap between the rich and the poor.
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