progressive taxation
Progressive taxation is a tax system where individuals with higher incomes pay a larger percentage of their income in taxes compared to those with lower incomes. This approach aims to reduce income inequality by ensuring that wealthier individuals contribute more to public services and social programs.
In a progressive tax system, tax rates increase as income rises. For example, the first portion of income may be taxed at a lower rate, while higher income brackets are taxed at higher rates. This structure is designed to distribute the tax burden more equitably among citizens, promoting fairness in the tax system.