Progressivity

Progressivity refers to a tax system where the tax rate increases as a person's income rises. This means that individuals with higher earnings pay a larger percentage of their income in taxes compared to those with lower incomes. The goal is to promote fairness by reducing income inequality, as those who can afford to pay more contribute proportionally more to public revenue. For example, someone earning $50,000 might pay a lower tax rate than someone earning $200,000, ensuring the tax burden aligns more closely with ability to pay.