Income problem and solution??
Answers
Explanation:
The salient features of the present edition are:All the Problems and Solutions have been thoroughly revised in the light of up-to-date amendments in Income tax Law and Rules for Assessment Year
Answer:
Problems of income
Effects of income inequality, researchers have found, include higher rates of health and social problems, and lower rates of social goods, a lower population-wide satisfaction and happiness and even a lower level of economic growth when human capital is neglected for high-end consumption.
Solution
A common solution to the problem of income inequality is to tax the rich more and use the proceeds to subsidize the poor.
Income tax is known to have economic disadvantages because it taxes people when they try to produce in order to increase their income and thus provides a disincentive to work.
A better tax is a tax on consumption which would discourage consumption and thus encourage savings and help promote economic growth
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