The Progressive Taxation Theory

Progressive taxation is a system where tax rates increase as income rises. It means that people with higher incomes pay a larger percentage of their earnings in taxes, while those with lower incomes pay less. The idea is to ensure fairness by reducing the tax burden on those who earn less and requiring those who earn more to contribute more, helping fund public services and reduce income inequality. For example, a person earning $30,000 might pay a lower tax rate than someone earning $300,000. This structure aims to promote economic balance and social equity.