Why Progressive Taxation is Imposed

1.

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2.

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3.

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4.

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5.

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Why Progressive Taxation is Imposed

1.

In the 1970s, government raised direct tax rates to 93.5%, reaching 97.5% by 1973-74.

2.

Heavily taxing a small group failed due to the narrow tax base.

3.

Large-scale tax evasion forced the policy to be withdrawn within years

4.

Progressive tax boosted revenue by taxing top earners more on higher incomes.

5.

The Progressive Tax resulted in Tax evasion.

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