Tax rate increases as the tax base increases answers.com
the rate structure for the individual income tax has been progressive, meaning that tax rates graduate upward as the base of taxable income increases. Different tax rates apply to ranges of income Progressive tax is a tax that take an increase in tax rate as income rise. it include higher tax rates for higher earning peoples. it based on Income of the respected person. Answer: A regressive tax rate is one where the tax rate decreases as the tax base gets larger. The social security tax is assessed on the first $106,800 of wages (in 2011). Thus, the social security tax rate is 4.2% (10.4% if self-employed) on the first $106,800 of wages and 0% on wages above $106,800.