MANAGEMENT

Detailed explanation-1: -In the U.S., the federal income tax is progressive. There are graduated tax brackets, with rates ranging from 10% to 37%. In 2022, if you’re single and have $15, 000 of taxable income, you’re in the 12% tax bracket, while if you’re single and have taxable income of $600, 000, you’re in the 37% tax bracket.

Detailed explanation-2: -If one tax code has a low rate of 10% and a high rate of 30%, and another tax code has tax rates ranging from 10% to 80%, the latter is more progressive. Income Tax, Luxury Sales Tax, Estate tax and surcharge on net income beyond Rs 50 Lakhs are a few examples of Progressive tax.

Detailed explanation-3: -Definition: Progressive tax is the taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases. A higher tax is collected from the taxpayers who earn more and lower taxes from taxpayers earning less. The government uses a progressive tax mechanism.

Detailed explanation-4: -India follows a progressive tax system. Under a progressive system, high-income earners pay more than low-income earners.