Title: Progressive Tax Definition
Headings: Progressive Tax
Progressive Tax
What Is a Progressive Tax?
Key Takeaways
Progressive Tax
Understanding the Progressive Tax
Advantages of a Progressive Tax
Disadvantages of a Progressive Tax
Progressive Tax vs. Regressive Tax
Progressive Tax vs. Flat Tax

Content: A progressive tax system also tends to collect more taxes than flat taxes or regressive taxes, as the highest percentage of taxes is collected from the highest amounts of money. A progressive tax also requires those with the greatest amount of resources to fund a greater portion of the services that all citizens and businesses rely on, such as road maintenance and public safety. Disadvantages of a Progressive Tax
Critics of progressive taxes consider them to be a disincentive to success. They also oppose the system as a means of income redistribution, which they believe punishes the rich, and even the middle class, unfairly. Opponents of the progressive tax generally are supporters of low taxes and correspondingly minimal government services. Progressive Tax vs. Regressive Tax
The opposite of a progressive tax, a regressive tax, takes a larger chunk of disposable income from low-wage earners than from high-wage earners. A sales tax is an example of a regressive tax. If two individuals, one rich and one poor, both buy an identical bag of groceries, both pay the same amount of sales tax. But the poorer person has shelled out a greater percentage of his or her income in order to get those groceries. Progressive Tax vs. Flat Tax
A flat income tax system imposes the same percentage tax on everyone regardless of income.