In this type of income tax system, the tax rate or the proportion of earnings taken out in taxes is greater for higher incomes.

Progressive tax

Explanation:

The progressive tax is a type of tax system that offers low income earners the opportunity to pay lower income taxes while High income earners will pay a higher income tax. This means that the tax been charged is dependent on the tax payer ability. this system can also be called PAYE ( pay as you earn).

This is tax system the tax burden is shifted to the high income earners and less burden is passed to low income earners.the disadvantage of this type is that inflation can make a tax payer pay more than he actually earns.

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