The Government adopting Progressive taxation system to tax people on the level of their income is an example of which function of public finance?

CA Foundation · Business Economics · MTP · September 2024
The Government adopting Progressive taxation system to tax people on the level of their income is an example of which function of public finance?
(A) A. Redistribution Function
(B) B. Allocation Function
(C) C. Normative Function
(D) D. Stabilization

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Redistribution Function

Topics: Public Finance

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