1. Discourages people from working
2. Assume people with same income have same needs
3. Reduces output
4. Discourage vertical mobility of labour
-The taxes are difficult to understand.
-They are difficulty to measure utility.
-It is a away of punishment to hard/ work.
-It breeds corruption for it can be evaded.
-It hampers social welfare.
-It can lead to scope of tax evasion.
-It doesn’t encourage capital formula
johnmulu answered the question on January 21, 2017 at 07:38
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