Definition

Noun: A graduated tax is a tax system where the tax rate applied increases progressively as the taxable amount (such as income or wealth) increases. It is designed so that those with a greater ability to pay contribute a higher percentage of their income.

Usage

The term "graduated tax" is used to describe the structure of a taxation system, most commonly applied to personal income. It is a formal economic and policy term. * The country implemented a graduated tax to reduce income inequality. * A key feature of a graduated tax is its multiple brackets with increasing rates.

Examples

• Under a graduated tax, an individual earning $30,000 pays a lower percentage than someone earning $300,000.
• Proponents argue that a graduated tax is fairer than a flat tax.
• The policy debate focused on whether to adjust the rates within the existing graduated tax.

Advanced Usage

• "Graduated" in this context refers to the stepped or tiered structure of the tax rates, not to the act of completing an academic degree.
• The concept is central to discussions on tax progressivity and redistributive economic policy.

Variants and Related Words

• Progressive Tax: This is a direct synonym for "graduated tax." Both terms describe the same system of increasing rates.
• Tax Bracket: A specific range of income subject to a particular tax rate within a graduated tax system.
• Graduate (verb): To complete an academic degree. (Note: This is a different, unrelated meaning of the word "graduate").

Synonyms

• Progressive tax

Antonyms

• Flat tax (a tax system with a single constant rate)
• Regressive tax (a tax where the effective rate decreases as the amount subject to taxation increases)

Noun

1. any tax in which the rate increases as the amount subject to taxation increases