Vipul: Created page with "==Definition== A tax is termed a '''progressive tax''' if the marginal tax rate (i.e., the rate of change of the tax to the quantity being taxed) is an increasing fun..."

2013-09-06T04:09:19Z

Created page with "==Definition== A tax is termed a '''progressive tax''' if the marginal tax rate (i.e., the rate of change of the tax to the quantity being taxed) is an increasing fun..."

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==Definition==

A [[tax]] is termed a '''progressive tax''' if the [[marginal tax rate]] (i.e., the rate of change of the tax to the quantity being taxed) is an increasing function of the quantity being taxed. In some cases, the marginal tax rate may be piecewise constant and increase in jumps at specific points; this is also termed a progressive tax.

==Related notions==

* [[Regressive tax]]
* [[Flat tax]] refers to a situation where the marginal tax rate is constant, and independent of the quantity being taxed (though the term is also used for a flat tax with a base exemption).

Progressive tax - Revision history

Vipul: Created page with "==Definition== A tax is termed a '''progressive tax''' if the marginal tax rate (i.e., the rate of change of the tax to the quantity being taxed) is an increasing fun..."