What is a characteristic of a progressive tax system?

A progressive tax system is specifically designed to impose a higher tax rate on individuals with higher incomes, meaning that as a person's income increases, the rate at which they are taxed also increases. This structure aims to reduce income inequality by ensuring that those who can afford to contribute more to the funding of public services actually do so through a higher tax burden.

In contrast, a system that charges the same amount regardless of income would be considered a flat tax, where everyone pays the same rate or a specific amount, which does not take into account the taxpayer’s ability to pay. Similarly, a flat percentage of income represents a proportional tax system where all individuals pay the same rate, regardless of income level. Taxes that solely affect corporate earnings do not reflect the characteristics of a progressive tax system, as this type of tax applies to corporate entities, not individual earners at varying income levels.

Therefore, the defining characteristic of a progressive tax system is that it increases the tax rate as income increases.