What is the justification of the progressive taxation method?
The progressive taxation method is a tax system where the rate you are taxed increases with your income. Under a progressive tax system, a person making more money is taxed at a higher percentage than someone who makes less money than them. The United States uses a progressive tax system today. Do you think this is fair? When it was first introduced, there were many arguments for and against this taxation method.
Answer and Explanation:
Those in favor of this method say that the progressive taxation method is best because it creates more equality. First, money is redistributed from the wealthiest citizens (via taxes) to the least wealth (via social programs). Additionally, those making a higher income have a greater disposable income and are able to still live comfortable while making less money.
Learn more about this topic:
from Business Law: Help and ReviewChapter 23 / Lesson 21
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