What is progressive tax?

[deepak]

I came across the term progressive tax while reading about different types of tax systems. Can someone explain what it means in simple terms? How is it different from other types of taxes, like flat or regressive taxes? And how does it affect people with different income levels?

 

[Rick_Grimes]

A progressive tax is a tax system where the tax rate increases as your income increases. In other words, people who earn more money pay a higher percentage of their income in taxes than those who earn less.

 

[Lucas]

A progressive tax is a tax system where the tax rate increases as income increases higher earners pay a higher percentage of their income.

 

[Emly]

A progressive tax is a tax system where the tax rate increases as a person's income or wealth increases, meaning higher earners pay a larger percentage of their income in taxes than lower earners.

 

[Sophie]

A progressive tax refers to a tax structure in which the rate gets higher with the increase in income or wealth. The higher earners contribute a higher percentage of income than the lower earners with a view of decreasing inequality and provide an equitable contribution to the national revenue.

 

[Mayank]

A progressive tax is a tax system where the tax rate increases as the taxpayer’s income rises. Higher earners pay a larger percentage of their income, ensuring fairness and reducing income inequality through graduated tax brackets.