progressive taxation
Scaled income charges
Progressive taxation is a system where tax rates increase as income rises—the more you earn, the higher percentage you pay.
Most income tax systems are progressive, with different brackets taxed at different rates: The first $50,000 is taxed at 12%, but income above that faces higher rates.
The principle is that those with greater ability to pay should contribute proportionally more.
Contrast with flat tax (single rate for all) and regressive taxation (where lower earners pay a higher effective percentage).
- tax bracketsIncome-based percentage groupings
- income bracketEarnings-based classification level
- income taxGovernment charge on earnings
- graduatedCompleted formal studies
- marginal tax rateTax on each extra dollar
wealth disparity · wealth redistribution · surtaxes · exemptions · economic inequality · income distribution · fiscal policy · ability to pay · tax burden · capital gains tax · economic mobility · inheritance tax · tax the rich · fair share · top earners · tax code · egalitarianism · class warfare
- inequalitywealth gap, income gap, disparity, wage gap, income disparity
- taxationtax, income tax, sales tax, tax return, tax refund
- income taxtax return, taxable income, tax brackets, tax rates, tax bracket
- left-wingliberal, social democracy, social democrat, democratic socialism, democratic socialist
- Nordic EconomicsSwedish model, welfare state, social democracy, mixed economy, krone
- Nordic Policywelfare state, social democracy, universal healthcare, parental leave, gender equality
progressive taxationflat tax
Single-rate income levy
poll tax · head tax · flat rate · sales tax · consumption tax