What tax system does the United States utilize?

The United States utilizes a progressive tax system, which means that the tax rate increases as the taxable amount increases. This structure is designed so that individuals with higher incomes pay a larger percentage of their income in taxes compared to those with lower incomes.

The progressive tax system is reflected in federal income tax brackets, where different portions of a taxpayer's income are taxed at varying rates. The system is intended to promote a more equitable distribution of the tax burden, ensuring that those with a greater ability to pay contribute more to government revenue. This approach is rooted in the principle of equity, aiming to reduce income inequality and provide necessary funding for public services and programs.

The other tax systems mentioned serve different purposes and have distinct characteristics. A flat tax system applies a single tax rate to all income levels, while a regressive tax system, which imposes a higher percentage rate on those with lower incomes, is generally considered less equitable. A consumption tax system, which taxes individuals based on their spending rather than their income, is also different from the progressive model used in the U.S. This focus on income tax brackets and the increasing rates applied to higher earnings firmly establishes the U.S. tax system as progressive.