Progressive Tax (Noun)
Meaning
Any tax in which the rate increases as the amount subject to taxation increases.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The government implemented a progressive tax system to reduce income inequality and redistribute wealth among its citizens.
- A progressive tax rate is often used to describe a tax system where higher income earners are taxed at a higher rate than lower income earners.
- The country's progressive tax code allowed for a lower tax rate on the first $20,000 of income and a higher rate on income above $100,000.
- Critics argued that the progressive tax system was unfair to high-income earners, who they claimed were being taxed excessively.
- The economist proposed a progressive tax on wealth, rather than just income, to address the growing wealth gap in the country.