Progressive taxation is a fiscal policy system in which wealthier people pay larger proportions of their earnings in taxes than do less well-off people. Generally speaking, states that implement progressive tax regimes do so by setting up a number of tax brackets in which people in society are sorted. People who earn more pay more in taxes. For example, the United states has five tax brackets in place within its federal income tax ranging from 10% for income between $0 and $8500 to 35% for income over $379150. Most states have some form of progressive tax within their tax system, this is usually their income tax, some however have a flat rate income tax (also coming in various forms), where all employees pay the same or similar rate of tax. These countries include Russia, Ukraine and Mauritius.
Proponents of progressive taxation argue that wealthier people are better suited to pay more taxes, as they have disposable income, require each unit of income less than does a poorer person, and have a greater burden to the state because of the benefits it has given them to become wealthy. They also promote the value of progressive taxation as a means of promoting a more equal and just society. Opponents of progressive taxation argue that it is an unfair burden to expect wealthy people to have to give up a larger proportion of what they earn simply because they are successful and that progressive taxation tends to damage economic growth by dampening work ethics and investments; in other words progressive taxation is unjust and inefficient. In the end, both sides contend to be the upholders of social justice and of better economic management.
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