Investor Glossary-progressive taxInvestor Glossary-progressive taxInvestor Glossary-progressive taxInvestor Glossary-progressive taxInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Progressive Tax

The HTML to link to this page
 

A progressive tax levies higher taxes on those of greater means. The US income tax was once a very progressive tax. It remains a somewhat progressive tax, but deductions make it less progressive than the progressive tax bracket schedule suggests. Significantly, the philosophical rationale for a progressive tax is that the wealthy can and therefore should pay more, so in principle any progressive tax should be assessed on wealth. In practice, the progressive tax is generally based upon income. Some studies suggest that poor and middle class households typically pay greater percentages of net worth in taxes, suggesting anything but a progressive tax system. For instance, in his book The Millionaire Next Door, Thomas Stanley points out that many high net worth households pay a lower percentage of net worth in taxes than most other households. In 1999, billionaire Donald Trump suggested a truly progressive tax to pay off the national debt. His progressive tax proposal was a one-time 14.5% tax on net worth for everyone worth over $10 million.



Rate this progressive tax definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: dividends payable, limit order, phantom income, deferred tax, wholly-owned subsidiary, cancelled check, LIBOR, 1031 exchange, average price per share, per diem, APR, covered put, irrevocable trust, inflation, labor relations, current ratio, required rate of return, ex-dividend date, stock split, retained earnings, risk management, minority interest, open position, liquidity ratio, command economy, class C shares, ex-dividend, 144a, debt service coverage, diluted share, option premium, balance sheet, margin rate, real GDP, Key Rate Duration, reverse mortgage, FTSE, deferred revenue, FICO score, annual return, stock market close, 401a, EBITDA, implied volatility, 1035 exchange, Zero Cost Collar, quality assurance, VIX, in escrow


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use