Progressive taxation is a tax system where the tax rate increases as the taxable amount increases. This means that those with higher incomes pay more taxes than those with lower incomes.
Think of progressive taxation like a staircase. The more steps (income) you climb, the higher you go (the more tax you pay).
Regressive Tax: A tax that takes a larger percentage from low-income people than from high-income people. It's the opposite of progressive tax.
Flat Tax: A system where everyone, regardless of income, pays the same tax rate.
Tax Bracket: The range of incomes taxed at given rates in a tax system. As they move up the brackets, taxpayers face higher rates.
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.