Progressive Taxes at a Glance
Progressive taxes are those which are applied equally to all tax payers. However, the taxes would have to apply as an equal amount of each individuals income, as opposed to a flat tax, which would be the same amount of tax for each individual. In contrast, regressive taxes are a form of taxation which is the same amount for each individual. For example, sales taxes apply to everyone, as a percentage of the purchase price.
Progressive taxes are considered the most fair form of taxation.While the taxes do not place an unfair burden on the wealthy, they also do not place an unfair burden on the poor. Income taxes could be progressive taxes if no deductions were allowed.
For example, an income tax of a flat thirty percent of an individuals income, would be a progressive tax, as each taxpayer would be taxed at the exact same percentage of their salary.
Those that made a salary above a certain threshold, would not be subjected to penalties for exceeding a certain salary. In addition, the poor would not loose advantages to the wealthy, such as an increase in deductions such as capital losses.
Progressive taxes are meant to distribute the tax burden equally to all citizens, as a flat percentage of their income. Lower salaries would not be penalized for a lack of deductions and higher salaries would not be penalized because they exceed a threshold.In fact,progressive taxes distribute the burden equally to all taxpayers, regardless of an intervening factors.