A Brief Note On Progressive Tax And Tax

955 Words Mar 10th, 2016 4 Pages
A progressive tax is a tax in which the rate of the tax increases when the taxable amount increases. Progressive taxation is the process in which the tax rates increases form low to high according to the income of the people. United States currently has this type of taxation method. Progressive taxation helps in the income inequality, maintains social justice and furthermore adds more revenue to the government. Tax plays an important role any country. There is no country which can run without the tax. Money that is raised by the taxation is used by government to do the day to day work of the country. The military, social service, officer and the other governmental works run with the help of collected revenue from tax. The developmental works also run with the help of tax. Without taxation, the government cannot run its day to day work. Yes, we should worry about taxes that have a regressive effect on the taxpayer. Regressive tax increases the burden on the on the poor people and reduces the burden of the high class people. There is an unequal distribution of income in the American society. The differences in the income of the class of the people is increasing. And the market alone cannot determine the income distribution in the society. There is a large gap between the class of the people due to the unequal distribution of the income and wealth. The gap between the rich and poor will increase and more people will come under the line of poverty if there was no attempt of…
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