Progressive Tax Systems

A progressive tax system is one where the tax rate increases as your income rises. Essentially, people with higher earnings pay a larger percentage of their income in taxes than those with lower incomes. This approach aims to distribute the tax burden fairly, based on the ability to pay, reducing income inequality. For example, someone earning $50,000 might pay a lower tax rate than someone earning $200,000, who would pay at a higher rate on the additional income. This tiered structure helps generate government revenue while promoting economic fairness.