Final answer:
A progressive tax system collects a greater share of income from high-income individuals, making income splitting advantageous for tax purposes.
Step-by-step explanation:
The progressive nature of the tax system tends to increase the advantage of income splitting.
A progressive tax system is one in which the wealthy individuals pay a higher percentage of their income in taxes compared to those with lower incomes. This system aims to collect a greater share of income from those with higher incomes.
Income splitting refers to the strategy of dividing income between family members to reduce the overall tax burden. In a progressive tax system, income splitting can be advantageous because it allows high-income earners to distribute a portion of their income to lower-income family members, who would be taxed at a lower rate.