MANAGEMENT

Detailed explanation-1: -When an increase in income moves you into a higher tax bracket, you only pay the higher tax rate on the part of your income that falls into that bracket. You don’t pay a higher rate on all of your income.

Detailed explanation-2: -A progressive tax is characterized by a more than proportional rise in the tax liability relative to the increase in income, and a regressive tax is characterized by a less than proportional rise in the relative burden.

Detailed explanation-3: -A progressive tax involves a tax rate that increases (or progresses) as taxable income increases. It imposes a lower tax rate on low-income earners and a higher tax rate on those with a higher income.