Question by Edward: What’s the difference between tax brakets and progressive income tax?
I see New Zealand uses tax brakets instead of progressive tax, but isn’t it still progressive if it targets different levels of income?
Best answer:
Answer by stephen_toon
tax brackets are part of a progressive tax system
http://en.wikipedia.org/wiki/Tax_bracket
What do you think? Answer below!
A progressive tax is a tax by which the tax rate increases as the taxable base amount increases
Tax brackets are the divisions at which tax rates change in a progressive tax system.
en(dot)wikipedia(dot)org