Explain the difference between progressive, regressive and proportional taxes and how they affect various wage earners. Defend or criticize the need for a proportional income tax instead of Progressive.
Remember! Marginal tax rates means you only pay on the additional income you earn that is above each preceding bracket.
Example: If I earn $20,000 in a country that has two bracket rates of 5% up to first 10,000 and 10% therefter then my tax bill is 5% times 10,000 and then added to the 10% times the remaining 10,000 since only the income above the first 10,000 is taxed at the higher rate.