What Is a Progressive Tax System?
The progressive tax is the current income tax system in the United States. The system taxes higher-income individuals at greater rates than lower-income individuals.Progressive Tax in a Sales TaxThe sales tax rate is the same for every person in a particular locale. But sales tax can still be progressive because people with higher incomes typically buy more goods than lower income individuals, thereby paying more tax.CreationAdam Smith and Karl Marx were the first to consider progressive tax. Smith discusses it in in his book “The Wealth of Nations,” while Karl Marx wrote about progressive tax in “The Communist Manifesto.” France was the first government to use the system.Other Tax SystemsOther tax systems that are compared to the progressive tax are the flat tax and regressive tax. The regressive tax is the opposite of the progressive tax, in which higher tax rates apply to individuals with lower income. A flat tax applies the same rate to all, regardless of income.Countries Using a P
