Final answer:
A progressive tax is designed to take a larger share from those with higher incomes by taxing at a higher rate as income increases, in contrast to a regressive tax that disproportionately affects those with lower incomes.
Step-by-step explanation:
A progressive tax is a tax system that collects a greater share of income from those with higher incomes, as opposed to those with lower incomes. To illustrate, with progressive taxation, individuals earning between $50,000 and $80,000 might experience a tax rate of 20 percent, while those earning between $300,000 and $1,000,000 could be taxed at a 35 percent rate. This system aims to distribute the tax burden more equitably across different income levels, ensuring that higher earners pay a higher percentage of their income in taxes.
In contrast, a regressive tax places a greater burden on lower-income individuals. For example, sales taxes are often considered regressive, as everyone pays the same amount regardless of income, which means the tax takes up a larger percentage of a lower-income earner's income than that of a higher-income earner.