Progressiivregressiivsed

Progressiivregressiivsed are a type of tax system used in some jurisdictions, including Estonia, where the progressive and regressive components are combined. This system aims to balance the principles of both progressive and regressive taxation.

In a progressive tax system, the tax rate increases as the taxable income rises. This means that higher-income individuals pay a higher proportion of their income in taxes. In a regressive tax system, the tax rate decreases as the taxable income rises. This means that lower-income individuals pay a higher proportion of their income in taxes.

In a progressiivregressiivsed tax system, the overall tax burden is designed to be more equitable. For example, in Estonia, the progressiivregressiivsed tax system is applied to income tax. The basic personal income tax rate is 21%, but there are additional progressive rates for higher incomes. Additionally, there are regressive elements, such as tax-free allowances and deductions, which reduce the tax burden for lower-income individuals.

The progressiivregressiivsed tax system is intended to ensure that the tax burden is distributed more evenly across different income groups. This can help to reduce income inequality and promote social cohesion. However, the design and implementation of such a system can be complex and may require regular review and adjustment to ensure its effectiveness.