Simple English definitions for legal terms
Read a random definition: banc
A progressive tax is a type of tax where people who earn more money pay a higher percentage of their income in taxes than people who earn less money. This means that the more money you make, the more you have to pay in taxes. The government uses the money collected from taxes to pay for things like schools, roads, and hospitals. Taxes can be paid in different ways, like with money or through other means like property or goods.
A progressive tax is a type of tax where the rate of tax increases as the income of the taxpayer increases. This means that people who earn more money pay a higher percentage of their income in taxes than people who earn less money.
For example, in a country with a progressive tax system, someone who earns $50,000 a year might pay 20% of their income in taxes, while someone who earns $100,000 a year might pay 30% of their income in taxes.
The purpose of a progressive tax system is to create a more equal distribution of wealth in society. By taxing the wealthy at a higher rate, the government can use the revenue to provide services and support for those who are less well-off.
Other types of taxes include:
These examples illustrate the broad range of taxes that governments can impose on individuals, entities, transactions, or property to yield public revenue.