What is progressive taxation?
The Bankrate.com financial term of the day is: "progressive taxation."
The more you make, the more you're taxed. That's the idea behind progressive taxation, which the U.S. tax system follows. As your income reaches certain thresholds, all the money you make above the threshold is taxed at a higher rate.
With progressive taxation, your tax hit becomes progressively higher as your income climbs.
For answers to all of your tax questions, visit the Taxes section at Bankrate.com.