Progressive tax system

(redirected from Progressive Taxes)

Progressive tax system

A tax system that taxes the wealthy at a higher percentage rate than the less wealthy.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
It should impose additional and progressive taxes on the following: beauty parlours, cosmetics, first class travel, foreign maids, charity balls, fine dining of the rich, precious stones, etc.
Muhammad Jan Odhano CEO CDF said that Tax is means through which governments can be held accountable, rights be claimed and inequality be tackled while he further said that there are two types of tax system progress and regressive Progressive Taxes takes a higher percentage of tax from people with higher incomes, It means that the more a person earns, the higher his average rate of tax will be.
And because economic growth was strong in the postwar years, conservatives got little traction arguing that progressive taxes hindered economic growth, until the stagflation of the 1970s paved the way for the tax cuts of the Reagan era.
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.
"The progressive taxes will vary - from 10% to 22%.
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.
Viktor Trifunovski assesses in Dnevnik that SDSM's program contains both, a commitment to stimulating investments and a commitment to introducing progressive taxes. The author wonders how Macedonia can draw investors if it introduces higher taxes, especially in conditions of a serious economic crisis.
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. Finally, he proposes four Medicare reforms: income-related patient cost-sharing, earmarked financing, collective pre-funding, and equitable cost-effective rationing.
(16) The sum of after-tax payoffs is $202.50 for both the head and progressive taxes. For Treatments 1 and 2, four of the nine participants receive a higher after-tax payoff under the head tax, as noted in Table 1.
While none of these quotations specifically refer to estate taxes, estate taxes are one element in an overall policy of progressive taxes. And that is clearly what all three advocated.
a war of the poor against the rich." (The contemporary conservative tactic of attacking those who favor progressive taxes as indulging in "class warfare" is apparently nothing new.) It would take two decades and a constitutional amendment to undo the decision.

Full browser ?