Progressive Tax in Taxation
To understand why progressive taxes are important and how they work, it is important to first understand what a regular tax is. A regular tax is a tax that is paid on an individual’s income, which is simply the sum of all the income that they earn over a given period. A progressive tax, on the other hand, is a tax that is paid according to how much an individual earns. This means that a progressive tax is a tax that gets higher as an individual’s income increases. This revenue is then redistributed to individuals and businesses in the form of benefits such as national health insurance, education, and infrastructure investments.
