Read the given passage and answer the question that question that follow. Progressive taxation system is followed in India which means that people with high incomes have to pay a higher percentage of their income as tax and people with low incomes have to pay the a small percentage of their income. This policy is sometimes considered unfair but that is not the case. The poor can barely pay for their basic survival needs and so they should not be charged the same as the rich who can easily pay for luxuries. This system prevents the risk of taking too much money from the poor and is therefore, the most suitable policy for India. Which of the following argument could be made from the above passage?
Read the given passage and answer the question that question that follow. Progressive taxation system is followed in India which means that people with high incomes have to pay a higher percentage of their income as tax and people with low incomes have to pay the a small percentage of their income. This policy is sometimes considered unfair but that is not the case. The poor can barely pay for their basic survival needs and so they should not be charged the same as the rich who can easily pay for luxuries. This system prevents the risk of taking too much money from the poor and is therefore, the most suitable policy for India. Which of the following argument could be made from the above passage? Correct Answer This system protects the poor from losing too much.
The correct answer is option 1. This system protects the poor from losing too much.
From the given passage, it can be said that progressive taxation system is suitable for India as it taxes the rich and the poor according to their incomes. From the given arguments, only argument 1 provides a reason in favour of the passage. The passage gives no information whether this system can be followed in higher income countries or if it promotes inequality. Hence, option 1 is the correct solution.