A progressive tax system taxes higher incomes at higher rates, regressive tax burdens lower incomes more, and proportional tax imposes the same rate on everyone.
Progressive Tax: A progressive tax system imposes higher rates on individuals with higher incomes. It divides income into brackets, where higher earners are taxed at higher rates. For example, income over $100,000 may be taxed at 20% while income below that threshold is taxed at 10%.
Regressive Tax: In contrast, a regressive tax system places a higher burden on lower-income individuals. An example is a sales tax, where lower-income earners end up paying a higher proportion of their income compared to higher-income earners.
Proportional Tax: Also known as a flat tax, proportional tax imposes the same tax rate on everyone, regardless of income level. If the tax rate is 10%, all individuals, irrespective of their income, pay 10% of their earnings as tax.
https://brainly.com/question/30107255
