Legal Definitions - progressive tax

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:

• Accrued tax: A tax that has been incurred but not yet paid or payable.
• Admission tax: A tax imposed as part of the price of being admitted to a particular event.
• Accumulated-earnings tax: A penalty tax imposed on a corporation that has retained its earnings in an effort to avoid the income-tax liability arising once the earnings are distributed to shareholders as dividends.
• Additional tax: A temporary tax imposed to raise revenue quickly, often in response to an emergency or crisis.

These examples illustrate the broad range of taxes that governments can impose on individuals, entities, transactions, or property to yield public revenue.