Question

Explain the implication of a tax rate of 60% on the taxpayer?

Answer 1

Answer:

THIS HAPPEN

Explanation:

GST JA KE PAD LO BHAI

Answer 2

The implication of a tax rate of 60% on the taxpayer would be:

• A higher tax rate means the taxpayer owns a high amount of wealth. If a taxpayer has to pay taxes at a rate of 60% that means they have to give up more than half the income they earn and this shall in a way reduce their purchasing power which further shall immensely affect the economic growth of the nation.
• This tax rate would increase the revenue for the government but negatively affect the taxpayers. If the government makes such tax slabs wherein every individual irrespective of their income level has to pay a tax rate of 60% then, the already downtrodden section of people will be put off in a worsened situation, this is why tax slabs are made according to the income levels.
• Taxes are of two types direct tax and indirect tax. Direct taxes are levied on individuals for example income tax. Indirect taxes are levied on goods and services for example GST(goods and services tax).
• Income taxes are based on the incomes of individuals and a 60% tax rate would mean the person is wealthy enough and needs to give more tax for the betterment of society. Whereas taxes like GST are high on let's suppose liquor, the reason would be higher the taxes lesser would be its consumption which would lead to an increase in the quality of life of citizens.

#SPJ2