A report on Progressive tax, Tax and Tax incidence

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
Figure 1 – tax incidence in perfect competition
A caricature of William Pitt the Younger collecting the newly introduced income tax.
Pieter Brueghel the Younger, The tax collector's office, 1640
Inelastic supply, elastic demand: the burden is on producers
German marginal and average income tax rates display a progressive structure.
Substitution effect and income effect with a taxation on y good.
Similar elasticities: burden shared
"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

In economics, tax incidence or tax burden is the effect of a particular tax on the distribution of economic welfare.

- Tax incidence

Progressive taxes are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay.

- Progressive tax

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

That allows one to derive some inferences about the progressive nature of the tax system, according to principles of vertical equity.

- Tax incidence

The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive.

- 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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