What economic principle suggests that individuals with higher incomes should contribute a larger percentage in taxes to support social services?

Progressive taxation is an economic principle that seeks to ensure that individuals with higher incomes contribute a larger percentage of their income in taxes compared to those with lower incomes. The underlying idea is based on the belief in equity and fairness in taxation. It operates on the premise that those who have a greater ability to pay, due to their higher income levels, should contribute more to the funding of public services and social programs, which benefits society as a whole.

This system is designed to help reduce income inequality and provide necessary funding for social services such as healthcare, education, and social welfare programs. In practice, this can mean that tax rates increase in intervals or brackets, where higher income levels are taxed at higher rates than lower income levels. This approach is meant to alleviate the tax burden on lower-income individuals while ensuring that wealthier individuals contribute a fair share to the public good.

In contrast, regressive taxation would mean that lower-income individuals pay a higher percentage of their income compared to those who are wealthier, which is not aligned with the principle of fairness. Proportional taxation and flat taxation imply that everyone pays the same rate regardless of income, which does not support the idea of wealthier individuals contributing more. Thus, progressive taxation is the principle that directly