Tax Structure

• What do progressive tax systems allow income earners to do?

  Contribute to public revenue according to ability
• What happens when taxes are decreased on the lower end?

  The system becomes more progressive
• How does increasing taxes on the upper end affect income distribution?

  It leads to a more equal distribution of income
• What are the characteristics of a more progressive tax system?

  • Decreasing taxes on lower income earners
  • Increasing taxes on higher income earners
  • Results in more equal income distribution