Title: What is progressive tax? Definition and meaning - Market Business News
Headings: What is progressive tax? Definition and meaning
What is progressive tax? Definition and meaning
Progressive and Regressive Tax
Progressive tax – video explanation
Progressive tax common worldwide
Progressive tax – pros & cons
Advantages:
Disadvantages:
Progressive income tax – a brief history

Content: As far as the government is concerned, progressive taxation means more tax revenue – the system allows the government to collect more taxes than regressive or flat taxes, because tax rates are indexed to increase as earnings go up. Some people say that progressive taxation is fairer – those with the greatest resources can afford to pay more, and ‘so they should’. Disadvantages: People who are against this type of tax system say it is discriminatory against high-income individuals and rich people. It is simply a form of income redistribution. They also point out that when the government gets hold of people’s money, it does not spend it wisely – a very small proportion of government spending goes to helping poor people, they claim. Very steep progressive tax systems – where the top rate is extremely high – discourage hard work and ambition. “ Why should I bother to work hard, create lots of jobs and earn loads of money, if the government then takes most of it from me,” critics say. In the late 1960s, Britain’s tax system hit rich people extremely hard – Prime Minister Harold Wilson raised the top rate of income tax to 83%. The result was that thousands of wealthy individuals emigrated.