Final answer:
A graduated income tax is a tax system where rates increase as income levels increase. It promotes an equitable distribution of the tax burden.
Step-by-step explanation:
A graduated income tax is a type of tax system where tax rates increase as income levels increase. In this system, individuals with higher incomes pay a larger percentage of their income in taxes compared to those with lower incomes. This is usually done to achieve a more equitable distribution of the tax burden and to promote social welfare.
For example, let's say there is a graduated income tax system with three tax brackets: 10% for incomes up to $50,000, 20% for incomes between $50,000 and $100,000, and 30% for incomes above $100,000. If someone earns $60,000, they would pay 10% on the first $50,000 and 20% on the remaining $10,000.
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