Progressive taxation

Progressive taxation means the marginal tax rate rises as the tax base increases. It is commonly used for personal income and, in Switzerland, also appears in wealth taxation at cantonal and communal levels. The aim is to reflect ability to pay, while preserving statutory deductions, family factors, and federalist differences. Progression can create high marginal burdens when income increases or deductions phase out. It differs from proportional taxation, where the same rate applies across the tax base.