What type of tax takes a larger percentage of wealthier taxpayers' income and a smaller percentage of the income of those who earn less?

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2026-07-12 10:26

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A progressive tax takes a larger percentage of income from wealthier taxpayers and a smaller percentage from those with lower incomes. This system is designed to reduce income inequality by imposing higher rates on higher income brackets, while lower earners benefit from lower rates. Income tax is a common example of a progressive tax structure.

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