progressive

Examples of progressive in the following topics:

• Comparing Marginal and Average Tax Rates

  • Taxes can be evaluated based on an average impact or a marginal impact and can be categorized as progressive, regressive, or proportional.
  • A progressive tax is a tax in which the tax rate increases as the taxable base amount increases .
  • The term "progressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from low to high, where the average tax rate is less than the marginal tax rate.
  • The opposite of a progressive tax is a regressive tax, where the relative tax rate or burden increases as an individual's ability to pay it decreases.
  • Graph demonstrates a progressive tax distribution on income that becomes regressive for top earners.

• Trading off Equity and Efficiency

  • Income taxes are a laddered progressive tax where income tax rates are set in income bands or ranges.
  • Vertical equity follows from the laddering of income tax to progressively higher rates.
  • The purpose of a progressive tax system is to increase the tax burden to those most able to pay.
  • Income tax is a progressive tax that assumes a regressive nature at the highest tax rate.
  • Explain tax equity in relation to the progressive, proportional, and regressive nature of taxes.

• How Income is Allocated

  • However, economists view the impact of technological progress to outweigh the effect of globalization, as technology has effectively been substituted for more expensive wage labor.
  • One way in which governments attempt to decrease income inequality is through progressive taxation.

• Government Involvement

  • Known as Progressives, these people favored government regulation of business practices to ensure competition and free enterprise.
  • These laws were not rigorously enforced, however, until the years between 1900 and 1920, when Republican President Theodore Roosevelt (1901-1909), Democratic President Woodrow Wilson (1913-1921), and others sympathetic to the views of the Progressives came to power.

• Taxes

  • Progressive Tax: The more a person earns, the higher the tax rate.
  • Generally in a progressive tax system, income is divided into "brackets. " For example, assume a tax system divides earners into people two groups.

• Reasons for and Consequences of Shift in Aggregate Supply

  • Examples of events that cause the curve to shift to the right in the short-run include a decrease in the wage rate, an increase in physical capital stock, and technological progress.
  • Examples of events that shift the long-run curve to the right include an increase in population, an increase in physical capital stock, and technological progress.

• Economic Systems

  • The ideas of "progress," economic development and economic growth came with the development of the commercial world that replaced the feudal society of the medieval world.

• Fiscal Policy -- Budget and Taxes

  • Most debates about the income tax today revolve around three issues: the appropriate overall level of taxation; how graduated, or "progressive" the tax should be; and the extent to which the tax should be used to promote social objectives.
  • From the outset, the income tax has been a progressive levy, meaning that rates are higher for people with more income.
  • Most Democrats favor a high degree of progressivity, arguing that it is only fair to make people with more income pay more in taxes.
  • Many Republicans, however, believe a steeply progressive rate structure discourages people from working and investing, and therefore hurts the overall economy.

• Introduction to the U.S. Economy: A Brief History

  • The New World then progressed from a marginally successful colonial economy to a small, independent farming economy and, eventually, to a highly complex industrial economy.

• Financing the US Government

  • For example, income taxes due to their progressive nature are used to equitably derive revenue by differentiating tax rates by income strata.