Progressive Tax

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Progressive Tax

Progressive Tax means:
a tax whose rate increases as the amount subject to the tax increases, thereby taxing the wealthy at a higher rate than the poor or the middle class. A tax that takes a larger percentage of income from high-income groups than from low-income groups.

See also other Tax Terms and Definitions in U.S.A.

regressive tax.

See Progressive Tax and Progressive Tax.

Description and Definition of Progressive Tax

A tax that uses higher tax rates as income increases. This type of tax takes a larger percentage of income from high income groups than from low income groups. The U.S. federal income tax system is based on a progressive tax, with rates starting at 15 percent and rising to 39.6 percent for higher income taxpayers.


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Further Reading

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