Progressive tax system

A progressive tax system taxes individuals at increasing rates as their income rises. This means that people earning lower incomes pay a smaller percentage of their earnings in taxes, while those with higher incomes pay a larger percentage. The idea is to ensure fairness by reducing the tax burden on those less able to pay and generating more revenue from those with greater financial resources. Tax brackets are set so that as your income crosses certain thresholds, the additional income is taxed at higher rates, creating a tiered structure that adjusts for income levels.