A tax system in which tax rates increase as income increases is called a(n)________ system.

Question

Quizplus · Accepted Answer

A progressive tax system is designed such that tax rates increase as income increases. This means that individuals with higher income levels are taxed at a higher rate than those with lower income levels. The aim of a progressive tax system is to ensure that those who can afford to pay more in taxes contribute a larger share of their income towards government revenues, while those who are less able to do so pay a smaller portion. This is viewed as a fair way to distribute the tax burden across different income groups.

A Tax System in Which Tax Rates Increase as Income