What are progressive, regressive, and proportional taxes? Why are income taxes usually progressive?
Regressive taxes mean tax burdens decline as one’s income rises, progressive taxes put more burden on those who earn higher incomes by steadily increasing the rate for higher incomes.Proportional taxes means the proportion stays the same regardless of income. Income taxes are proportional because they tax the rich (which yields higher revenues than taxing the poor, so they are more equitable) and because they automatically stabilize the economy by taking more money away when wages spiral upwards. This slows down inflation appreciably. Good luck in Micro.
