Is income tax progressive or regressive?

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561 viewsAugust 28, 2013Tax

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Guest 60 May 6, 2013 0 Comments

I don’t know what progressive tax and regressive tax mean in practice? Is the income tax we pay progressive or regressive?

1 Answer

score 0 · Answer 1 · 2013-05-06T22:41:45+00:00

The income tax is progressive as it increases when the income increases (hence the tax rate bands). A regressive tax describes situations where the tax decreases as the income increases which is not the case.