by 
The Curious Bag
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Tax rates have sparked debates for thousands of years. Many nations, such as the United States, employ a progressive tax system. Even after several decades of use, however, the U.S. government continues to tweak progressive tax rates.
The Facts
A progressive tax system charges a higher tax rate as income levels rise, according to MSN's Money Central. The United States has a 10 percent federal income tax rate for the lowest earners and a 35 percent rate on the highest incomes.
History
The U.S. progressive income tax hovered around 70 percent for the upper income bracket before the 1980s, says University of Michigan tax economist Joel B. Slemrod on the Library of Economics and Liberty website. The rate has held at around 35 percent since economic reform in the early 1980s.
Considerations
Tax rates usually become much less progressive after deductions and refunds reduce a person's taxable real income, reports Slemrod.
Function
The idea behind the progressive tax system is that those with higher incomes can afford to pay a higher tax rate, according to Encyclopedia Britannica, while those in a lower income bracket have a much greater need for money to afford necessities.
Criticism
An argument against a progressive tax system is that as tax rates climb, people see less of a benefit from working and have less of a motivation to work and save, says Slemrod.
Source:
MSN Money Central: Progressive Tax
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