Taxation Models

Taxation models are frameworks used by governments to collect revenue from individuals and businesses. The main types include progressive, regressive, and proportional taxation. In a progressive model, higher incomes are taxed at higher rates, promoting equity. Regressive taxation takes a larger percentage from low incomes, often seen in sales taxes. Proportional taxation, or flat tax, applies the same rate regardless of income level. These models impact economic behavior, social equity, and government revenue, influencing how resources are allocated and services provided, reflecting societal values about fairness and responsibility.