What characterizes progressive taxes?

Progressive taxes are characterized by rates that increase as an individual's income increases. This means that those who have a higher income pay a larger percentage of their income in taxes compared to those with lower incomes. The underlying principle of progressive taxation is based on the concept of equity; it acknowledges that individuals with greater financial resources have a higher ability to contribute to funding government services and programs.

The progressive tax system is designed to reduce income inequality by imposing a greater burden on those who can afford to pay more, thereby redistributing wealth within society. This mechanism aims to create a more balanced economic environment and support lower-income individuals through the funding of social programs and services that can help alleviate poverty and enhance social mobility.