Progressive Taxation

Progressive taxation is a system where the tax rate increases as a person's income rises. In simpler terms, those who earn more money pay a higher 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 a fairer share to public services and social programs. For example, someone earning $50,000 might pay a lower tax rate than someone earning $200,000, creating a tiered effect that supports economic equity in society.