Progressive tax structures refer to taxation systems where individuals with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. This is done in an effort to reduce income inequality.
Related terms
Regressive Tax Structures: Taxation systems where individuals with lower incomes pay a higher percentage of their income in taxes compared to those with higher incomes.
Flat Tax Structures: Taxation systems where all individuals, regardless of income level, pay the same percentage of their income in taxes.
Marginal Tax Rate: The rate at which additional income is taxed after reaching certain income thresholds.