# Progressive Tax

*Taxes — Finicade finance glossary*

A progressive tax takes a larger share of income as income rises, which is what a system of rising brackets produces. The justification is the diminishing marginal utility of money: a dollar means less to someone who has many. The counter-argument is behavioural — high marginal rates discourage work, saving and reported income — which is where the Laffer curve debate lives.

**Also known as:** progressive taxation, graduated tax

**Related terms:** [Regressive Tax](https://finicade.com/glossary/regressive-tax), [Flat Tax](https://finicade.com/glossary/flat-tax), [Tax Bracket](https://finicade.com/glossary/tax-bracket), [Marginal Tax Rate](https://finicade.com/glossary/marginal-tax-rate), [Gini Coefficient](https://finicade.com/glossary/gini-coefficient)

Source: https://finicade.com/glossary/progressive-tax