Progressive tax system

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Progressive tax system

A tax system that taxes the wealthy at a higher percentage rate than the less wealthy.

Progressive Tax System

A system of taxation in which persons or corporations are assessed at a greater percentage of their income according to the theoretical ability to pay. That is, taxpayers pay more in taxes if they earn more in income. For example, taxpayers may pay 25% of their income in taxes up to a certain amount, and 35% of everything earned over that amount.

A theory behind progressive taxation states that persons or corporations who earn the same or a similar amount of money should be taxed in the same or a similar way. For example, the theory states that two individuals making $50,000 per year should be taxed the same amount, regardless of how they earned their income. This is known as horizontal equity. While most countries have some form of progressive taxation, it is usually coupled with other taxes, such as a sales tax, and few countries treat all income as exactly the same. See also: Regressive tax system.
References in periodicals archive ?
One of the amendments included abandoning progressive taxes that ranged between five and 55 percent and uniting the fees at 15 percent to all companies.
A combination of three factors contributed to this reversal: wartime destruction of capital, progressive taxes, and high growth rates.
WASHINGTON -- The Senate Democrats' top message man is urging the party leftward in the wake of crushing midterm election losses, saying working Americans want a robust government that will promote education access, labor bargaining rights, progressive taxes and more.
Options to raise revenue include broadening the base for personal income tax and value-added tax, enlarging corrective taxes and nontax revenues, and introducing naturally progressive taxes on property, capital gains, and inheritance, the report says.
We conclude that eliminating progressive taxes, suppressing wages, and cutting public services are actually a recipe for economic inequality, declining incomes, and undermining public infrastructure and education that really matter for long-term economic growth.
Perhaps not, but fair and progressive taxes are the very foundation of a civilised and humane society and they are the key to the provision of our public services and as Cllr Arundale suggests, we all have a responsibility to pay our fair share.
According to Nehme, "nearly 70 percent of taxes in Lebanon are fixed and the rest are progressive, so any reforms would need to shift that balance in favor of progressive taxes.
Regressive taxes are taxes that take a larger share of income from middle- and low-income groups than from higher income groups; proportional taxes take the same percentage of income from all, regardless of income; progressive taxes take a larger proportion of income from higher income groups than from lower income groups (Institute on Taxation and Economic Policy [ITEP], 2005).
Luttmer, Harvard University and NBER, "Insurance Benefits from Progressive Taxes and Transfers"
However, the Labor Minister demands a restoration of the progressive taxes for the duration of the economic crisis - perhaps until the end of 2011.
The untapped avenues of resource mobilization the introduction of progressive taxes and the increase in production are totally being ignored by the government.
A 50-state move to progressive taxes, and adequate overall levels, could serve our national future.

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