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 ?
The study suggests regional countries to encourage public participation in tax reforms, saying that transparency and public awareness are important measures to overcome the difficulties of revenue mobilisation associated with deploying progressive taxes.
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.
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.
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.
Trifunovski cites opposition party SDSM, which emphasized that progressive taxes are a practice in Western Europe.
He then considers similar approaches to other issues, including a consumption surtax with a very high exemption as a supplement to the personal income tax and a progressive value-added tax, combining conservative preferences for consumption taxes with liberal preferences for progressive taxes.
Similarly, research for the Center for American Progress the same month found 64 percent supporting progressive taxes over 32 percent favoring "the same rate regardless of their income," according to a poll by Penn, Schoen & Berland.
While none of these quotations specifically refer to estate taxes, estate taxes are one element in an overall policy of progressive taxes.

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