Progressive tax is any tax in which the rate increases as the amount of income increases. Furthermore, the richer households pay more than the poorer households. The poorer households pay a less percentage. Regressive tax is a tax that decreases in percentage as income increases. This places a larger burden on lower income households that it does on higher income earners. Proportional tax is any tax in which the rate is constant as the amount of income increases. Richer households or poorer households pay the same amount of tax.
A progressive tax does have it beneficial and harmful effects to households. A progressive tax can be fair because the poorer households have more disposable income, since their tax percentage is less. There is not much of a burden on the richer households because they still have a large amount of money that is disposable. But, this system may be considered unfair to the rich people, since they have no reward for making a high income. Since the poorer households pay less percentage of their tax, it may require them to pay for their own healthcare.