The progressive tax system follows the theory that high-income earners are the ones who can afford to pay more. So it ensures that all taxpayers pay the same rates on the same levels of taxable income. For example, a tax on luxury cars is a tax that takes a larger percentage only those of a larger income can afford.
A regressive tax is disproportionate for the low income earners pay a higher amount of their incomes in taxes than the individuals with higher income. A tax on the basic necessities is, for example, a regressive tax; because it is part of the expenditure consumed form a larger percentage of the lower income population; it's the same percentage of products or goods purchased regardless of the buyer's income.
The current U.S. federal income tax is a progressive tax system.
