Progressive taxes take a larger percentage of income from high-income groups than from low-income groups. The tax rate increases as the taxable income increases.
This method is based on ability to pay.
It is considered the fairest means of taxation.
Proportional (or flat) tax is where all income levels are taxed at the same percentage rate.
Proportional taxes have a regressive effect on taxpayer's total income. Proportional taxes take a larger portion of income from those in lower-income groups.
Sales tax and real estate taxes are examples of proportional taxes.