What Is A Progressive Tax System? Essay
The progressive tax system is the type of tax system that the U.S has. What it is, is that the wealthier you are the more you are taxed and the poorer you are the less you are taxed. This tax style is very helpful to the poorer population, but the wealthier population don 't like it. Sometimes the rich get taxed up to 20% more than poor people, also most of the time if an individual makes less than a certain amount they don’t have to pay this tax. Progressive tax covers income tax. On the opposite end, there is regressive tax. Regressive tax does not change no matter your income, this is especially hard on individuals with a low income. The best example of this is sales tax, it is the same if you make barely any money or you are one of the wealthiest people alive.
2. What is gross income? What types of income are included in gross income?
Gross income is how much you make before tax, and this determines how much you are taxed. Gross income is not limited to just cash revenue, it also takes into account property.
3. What is the alternative minimum tax?
The alternative minimum tax or AMT, is an income tax that the federal government puts on not only individuals, but also businesses, estates, and trusts. The idea was to keep extremely wealthy individuals from abusing tax breaks. How to get be in the AMT is something the government does for you, what happens is after you do all the math…