Progressive Tax Vs Regressive Tax

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"The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state."
A progressive tax is a tax where the tax rate increases as your income increases. The progressive tax takes a larger percentage from the income of high-income earners than it does from low-income individuals based on the concept of ability to pay. By dividing taxpayers into categories based on income level it then allows the wealth of the country to be equalized.
When individuals envision progressive tax systems they are usually referred to the income tax that is due on April 15th of every year. However, progressive taxes comes in various forms, such as estate taxes or luxury taxes on consumer goods.
Estate taxes require higher net worth individuals to pay an additional tax on their property when they die. If the value …show more content…

However a regressive tax is the exact opposite. Higher-income taxpayers pay a smaller percentage of their income than lower-income taxpayers because the tax is not based on ability to pay. A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder, such as sale taxes. When a regressive tax is based on consumption such as a sales tax, it can introduce an element of freedom of choice. However, only the consumers whom choose to use the particular good or service must pay the tax that follows, and those who consume more frequently most pay more taxes than the occasional users. However, consumers have some measure of control of how much they pay in taxes. For instances, if the consumer wishes to reduce what they pay in taxes, they can cut back on or eliminate the use of that particular good or

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