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Svet_ta [14]
3 years ago
15

In this type of income tax system, the tax rate or the proportion of earnings taken out in taxes is greater for higher incomes.

progressive proportional regressive capital
History
2 answers:
likoan [24]3 years ago
8 0
It would be a "progressive" tax system in which the proportion of earnings taken out in taxes is greater for higher incomes, since the idea is that those making more can afford to pay more.
JulsSmile [24]3 years ago
6 0

I believe the answer is: progressive tax system

In a progressive tax system, we impose different tax rates to the people whose earning reach a certain income bracket. With the purpose of ensuring proper amount of wealth allocation.

In united states, the separation for each bracket would look like this:

Taxable Income             Tax Rate


$0 - $9,525                10% of taxable income


$9,526 - $38,700    $952.50 plus 12% of the amount over $9,525


$38,701 - $82,500        $4,453.50 plus 22% of the amount over $38,700


$82,501 - $157,500 $14,089.50 plus 24% of the amount over $82,500


$157,501 - $200,000 $32,089.50 plus 32% of the amount over $157,500


$200,001 - $500,000 $45,689.50 plus 35% of the amount over $200,000


$500,001 or more         $150,689.50 plus 37% of the amount over$500,000

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