Progressive Taxation

Progressive taxation is defined as a form of tax thatvarious social, economic and political activities.
charges a bigger percentage rate on the income ofMany people argue that the tax system lacks a
high income group than it does on the income of lowcoherent organizing principle because successive
income group. As the income of the individualgovernments very often have brought about frequent
increases, the tax rate he pays also increaseslegislative amendments to tax laws to please their
proportionately. So this is a sort of graduated tax. Thesupporters and certain sections of the society. There
rationale behind such a taxation principle is that thoseare many people who oppose progressive taxation
who earn more can save more and therefore, shouldsystem. They believe that such a tax system should
pay more to the government.not be applied to all and they have a legal and moral
In the US, according to the treasury department 0.1right not to pay taxes. They consider it as illegal and
percent of the top income group pays 17.4 percent ofoppressive on the part of the federal government.
all the federal tax and 50 percent of the low incomeThey argue that only the wealthy should be taxed
group pays only 3.03 percent of all the individual tax.heavily and those who are engaged in a wide range
This shows that the US tax system is based on theof tax evasion strategies. On many occasions people
principle of progressiveness. The main purpose ofhave approached the court of law to get the tax laws
taxing in this way is to garner revenue for the federalmodified making progressive taxation a matter of hot
government so that the monies can be utilized forlegal discussion and debate.