Inequality And Wealth Distribution Questions
Progressive taxation is a system in which the tax rate increases as the income or wealth of an individual or entity increases. This means that individuals with higher incomes or greater wealth are required to pay a higher percentage of their income or wealth in taxes compared to those with lower incomes or lesser wealth. The aim of progressive taxation is to promote income redistribution and reduce income inequality by ensuring that those who are more financially capable contribute a larger share of their resources to support public services and social welfare programs. This approach is often justified on the basis of fairness and the ability-to-pay principle, as it places a greater burden on those who can afford it more easily, while providing relief to those with lower incomes.