What characterizes progressive tax rates?

Progressive tax rates are designed such that individuals with higher incomes are taxed at a higher percentage compared to those with lower incomes. This structure reflects an effort to distribute the tax burden more equitably and to address income inequality. The rationale behind progressive taxation is that those who have a greater ability to pay should contribute a larger proportion of their income to support public goods and services.

In a progressive tax system, as income increases, the tax rate imposed on that income also increases, which means that higher income earners are contributing a more substantial percentage of their income. This can lead to a more equitable economic environment where the government can fund social services and welfare programs that benefit lower-income groups.

While the other options present different taxation concepts, they do not accurately describe the characteristics of progressive tax rates. Uniform tax rates, decreasing rates with increasing income, and corporate-only taxation do not align with the principle of progressive taxation, which explicitly aims to increase tax rates for higher earners to reduce wealth disparities.