A report on Progressive tax, Tax and Redistribution of income and wealth

Average tax rates by income groups in France, the United Kingdom, and the United States, 1970 (left) and 2005 (right). Taxes were more progressive in 1970 than in 2005.
Total revenue from direct and indirect taxes given as share of GDP in 2017
Number of high-net-worth individuals in the world in 2011
A caricature of William Pitt the Younger collecting the newly introduced income tax.
Pieter Brueghel the Younger, The tax collector's office, 1640
German marginal and average income tax rates display a progressive structure.
Substitution effect and income effect with a taxation on y good.
"Tax The Rich" banner at an International Union of Socialist Youth campaign for a financial transaction tax.
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
The function which defines the progressive approach to an income tax, may be mathematically defined as a piecewise function. In every piece (tax bracket), it must be computed cumulatively, considering the taxes which had already been computed to the previous tax brackets. Pictured is the effective income tax for Portugal in 2012 and 2013.
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
Distribution of US federal taxes from 1979 to 2013, based on CBO Estimates.
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
Diagram illustrating deadweight costs of taxes

A progressive tax is a tax in which the tax rate increases as the taxable amount increases.

- Progressive tax

Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law.

- Redistribution of income and wealth

Some levy a flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of annual income amounts.

- Tax

This is especially true if taxation is used to fund progressive government spending such as transfer payments and social safety nets.

- Progressive tax

In a progressive income tax system, a high income earner will pay a higher tax rate (a larger percentage of their income) than a low income earner; and therefore, will pay more total dollars per person.

- Redistribution of income and wealth

Progressive taxation generally reduces economic inequality, even when the tax revenue is not redistributed from higher-income individuals to lower-income individuals.

- Tax
Average tax rates by income groups in France, the United Kingdom, and the United States, 1970 (left) and 2005 (right). Taxes were more progressive in 1970 than in 2005.

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