Definition
A progressive tax is a tax system in which the tax rate increases as income increases.
Why It Matters
It is designed to reduce income inequality.
Example
Higher-income earners pay a higher income tax rate.
Malone Global University
Malone Global University
Economics Glossary – Malone Global University
A progressive tax is a tax system in which the tax rate increases as income increases.
It is designed to reduce income inequality.
Higher-income earners pay a higher income tax rate.