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 a progressive tax is to reduce income inequality by ensuring that wealthier individuals contribute more to public services and government funding.
In many countries, including the United States, the progressive tax system is implemented through different tax brackets. Each bracket has a specific tax rate, and as a person's income exceeds the threshold of a bracket, they pay the higher rate only on the income above that threshold. This structure aims to create a fairer tax system that supports social programs and infrastructure.