How does a progressive tax system function?

A progressive tax system is designed to ensure that individuals who have higher incomes pay a larger percentage of their income in taxes compared to those with lower incomes. This structure is based on the principle of equity, where those who can afford to contribute more to the funding of public services and government functions do so, thereby reducing the tax burden on those who have less financial capability.

In this system, tax rates increase as income levels rise, meaning that higher-income earners are taxed at higher rates than lower-income earners. The goal is to create a more balanced redistribution of wealth, provide funding for public services that benefit the community, and address income inequality. This type of tax structure often includes various tax brackets, where different portions of a taxpayer's income are taxed at different rates.

The other options describe different tax systems, such as flat taxes or regressive taxes, which do not align with the characteristics of a progressive tax system. Thus, the defining feature of a progressive tax system is that higher-income earners pay higher tax rates, which promotes economic equity and social welfare.