Progressive tax
A progressive tax is a type of tax system in which the tax rate increases as the taxable base or income increases. It is a method of taxation that imposes a higher tax rate on individuals or entities with higher income levels. This means that as the amount of the tax base increases, the rate of tax also increases.

Characteristics of a Progressive tax:
- Higher income individuals or entities pay a larger percentage of their income in taxes compared to those with lower incomes.
- The tax rate increases as the income brackets increase.
- The tax burden is distributed more heavily on the wealthy and less on the lower-income individuals or entities.

Advantages:
- It promotes income redistribution by taking a larger proportion of income from higher earners and using it to fund public services and welfare programs for the less affluent.
- It helps reduce income inequality by narrowing the gap between the rich and the poor.
- It provides a more equitable system of taxation, as those with higher incomes have a greater ability to pay taxes.

Disadvantages:
- It can discourage work and investment, as higher tax rates on higher incomes may disincentivize individuals from earning more money.
- It can lead to tax avoidance and evasion, as individuals may seek ways to legally or illegally reduce their taxable income.
- It may not be sufficient to address all issues related to income inequality, as other factors such as wealth and access to opportunities also play a significant role.

Examples of Progressive taxes:
- Income tax: Many countries have a progressive income tax system where higher income earners are subject to higher tax rates.
- Estate tax: Inheritance or estate taxes often have progressive rates, where larger estates are subject to higher tax rates.
- Luxury tax: Some countries implement a progressive luxury tax on high-end, expensive goods.

In conclusion, a progressive tax is a system in which the tax rate increases as the taxable base or income increases. It is designed to reduce income inequality by placing a heavier tax burden on higher-income individuals or entities.