0
Answer
A progressive tax means that the rich pay a higher overall tax rate than the poor. This is as opposed to a flat tax, in which the rate of taxation is the same for everyone.
Practical Example
Progressive taxation is actually pretty easy to understand if you look at an example with simple numbers. Assume that there are three "tax brackets" or rates of progressive taxation.
Assume that the first $10,000 you make is taxed at 5%
The next $10,000 you make is taxed at %10
And anything above $20,000 (the first $10,000 plus the second $10,000) is taxed at %20
If you make $5,000 per year, your tax rate is %5. You pay $250 in taxes.
If you make $15,000 per year, your tax rate is %5 on the first $10,000 and %10 on the next $5,000. As a result, you pay $500 on the first $10,000 and $500 on the next $5,000, for a total of $1,000 in taxes. That works out an effective tax rate of 6.67%. (Notice how this person makes 3 times more money than the person making $5,000, but pays 4 times as much in taxes ($1000 vs. $250))
If you make $30,000 per year, your tax rate is %5 on $10,000, %10 on $10,000, and %20 on $10,000. That's $500, $1000, and $2000, for a total of $3500. That works out to an effective tax rate of %11.67. (Notice how this person makes 6 times as much as the person making $5000, but pays 14 times as much in taxes ($3500 vs. $250))
What else can I help you with?
The personal income tax would be categorized as a progressive tax.?
true
Why the US personal income tax is considered a progressive tax?
As income increases the percentage of that paid as tax progressively increases. If it was a "flat tax" instead, the percentage paid would be constant regardless of income.
Would personal income disposable income or discretionary income be of the greatest interest to marketers?
Discretionary income, not personal income or disposable income, would be the greatest interest to marketers.
What is a tax levied on net personal or business income?
That would be an income tax.
Define earned income taxes and personal income taxes?
An individual taxpayer using the 1040 federal income tax return earned income worked for income and the related income taxes and the personal income taxes would be the same thing on the 1040 income tax return.
How much is 5 figure income?
A five-figure income refers to an annual salary that falls between $10,000 and $99,999. This means that any income within this range is considered a five-figure income. For example, a salary of $50,000 would be categorized as a five-figure income.
What if there had been no progressive era discuss atleast two ideas?
there would be no child labor laws, income tax, women wouldn't be able to vote, no income tax
If the total Gross National Product increased what would most likely happen to personal income?
Gross national product rarely affects personal income.
Is personal income released to the public?
No not under normal conditions. An individual personal income would not be released to the public unless the individual agreed to have certain information released to the public.
A rapid rise in profits relative to other types of income would affect?
Both the functional and personal distributions of income
What was on action that progressive took help poor people?
Worked for a national income tax
What would be the taxes on 600000000?
The taxes on $600,000,000 would depend on various factors, including the type of income (e.g., personal income, corporate profits), the applicable tax rate, and the jurisdiction. For example, in the U.S., corporate tax rates can range from 21% federally, plus any state taxes, while personal income tax rates can be progressive and vary widely. Without specific details on the income type and location, it's impossible to provide an exact figure. Consulting a tax professional or using tax software can provide a more precise calculation based on individual circumstances.
