What principle does a progressive tax system operate on?

A progressive tax system operates on the principle that the more you earn, the more you pay. This structure is designed to impose higher tax rates on higher income levels, meaning that individuals with greater financial resources contribute a larger percentage of their income in taxes compared to those with lower incomes.

The rationale behind this system is to ensure a fair distribution of the tax burden, promoting social equity and helping to fund public services that benefit society as a whole. As income increases, so does the percentage of income paid in taxes, which aims to alleviate the financial strain on those with lower incomes who may struggle to meet basic needs.

This principle is crucial for creating a more equitable society, allowing for wealth redistribution that can contribute to funding public goods and services like education, healthcare, and infrastructure.