| Assertion [A] A tax cut need not always leads to increase in economic growth in the economy. |
| Reason [R] Inequality in distribution of income leads to uneven growth impacts. |
| Choose from the options below. |
A) Assertion [A] is true and Reason [R] is correct reason of Assertion [A].
B) Assertion [A] is true and Reason [R] is not correct reason of Assertion [A].
C) Assertion [A] is false, Reason [R] is true
D) Both are false
Correct Answer: B
Solution :
A tax is a legal and compulsory payment however direct taxes are not paid by those whose income falls below a definate level. So, a tax cut may not always lead to economic growth.
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