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Progressive tax is calculated based on the taxable income of a person. The higher the income of a person the higher the Tax rate gets. A person with low income has to pay very low amount of tax but a person with higher income gets much higher tax rate.
For example if a person with taxable income 5000 dollars has to pay 10% tax then a person with 500,000 have to pay up to 35% tax according to the law of US
Yes but they don’t realistically pay that much. A person that, for example, earns 100,000 for the year is only paying 22% for what they earned even though they fall under the 28% tax bracket.
Oh wait, not for the year, x/ I need to jot more notes in my class D:
It’s Based On The Taxable Income
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