What is a progressive tax?

Progressive tax is the tax rate used for income or profits or expenditure that increases with increasing income/profits or expenditure. This is a tax system used in the US and many other countries. Those who earn the smallest amount of money tend to pay the lowest percentage of their tax income. People who make more money are taxed in higher percentage.

Taxation in most countries, including the US, is a little more difficult to calculate. Many did not understand the progressive tax rate as the following formula: Mr. X, which earns $ 20,000 USD (USD), pays 10% of their tax revenues. Mr. Y earns $ 40,000 USD and pays 15% of their income. The lady earns $ 60,000 and pays 20% of her tax income.

Instead, taxes are gradually raised. My. Y would pay 10% for the first $ 20,000 it earns and 15% for the second $ 20,000. Lady of W.OULD10% of the first $ 20,000, 15% for the second and 20% for the third. There are also a number of things that can reduce the percentage of taxation. If you get married and file a common tax return, or if you have a number of addicts to support, the progressive percentage of the tax would be reduced, because less of your money would actually be considered a taxable income. The lowest income, especially those below the level of poverty, would owe very little in real taxes. Businesses that lose money during the year instead of profit would probably not even owe taxes.

progressive tax can be used for certain types of expenditure. Any turnover tax may remain in a stable amount, but a person who spends more of his income on taxable goods will proportionally spend a higher amount of his turnover income, even if the percentage of turnover tax is the same for everyone. In addition, some items, such as yachts and luxury cars, are subject to luxury taxes that are much higher -proof taxes for these items.

There are many people whoThey support a progressive tax because they feel that it is fair that those who earn more should contribute more to the government. Those who have the least and cannot really afford to lose their income on taxes should not spend on financing government programs. Not all people agree with a progressive tax, because it means that people who make more money are "punished" for their success or wealth. Some propose a place of progressive taxes or expenditure tax instead of income.

others prefer a regressive tax where the percentage of taxes decreases when income increases. This would mean that the people who use the most would pay a much lower percentage of taxes, but because their income is high, they would still pay quite a lot of taxes. People who make the least would pay the highest percentage, although for those who are below the level of poverty can still be granted contributions. This system would allegedly mean Everyone would pay approximately the same amount in tax every yearh. Critics of the regressive tax system indicate that it would be an unfair burden for the least capable taxes.