Progressive Taxation

About

Progressive taxation is a tax system where the tax rate increases as the taxable income rises. This means that individuals with higher incomes are taxed at a higher rate compared to those with lower incomes. The goal is to reduce income inequality by shifting the tax burden to those who have a greater ability to pay. Progressive taxation is commonly used in personal income taxes, where tax brackets are established to group taxpayers by income range. Progressive taxation aims to ensure that the wealthy contribute more to public services and social welfare programs, which can help reduce poverty and improve living standards for low-income individuals. It is often contrasted with regressive taxes, where the same rate applies to all income levels, disproportionately affecting the poor. Progressive taxation is used in many countries to promote social justice and economic equality, though it can be subject to debate regarding its impact on economic growth and incentives for success.