Progressive Tax
A progressive tax is a tax system where the tax rate increases as an individual's income rises. This means that people with higher incomes pay a larger percentage of their income in taxes compared to those with lower incomes. The goal of this system is to reduce income inequality by ensuring that wealthier individuals contribute more to public services and infrastructure.
In many countries, including the United States, the progressive tax system is applied to income taxes. For example, individuals may pay a lower tax rate on their first $10,000 of income, while higher income brackets are taxed at higher rates. This structure aims to distribute the tax burden more equitably among citizens.