The tax whose rate increase as the level of income increases is known as

The tax whose rate increases as the level of income increases is known as a progressive tax. This means that the tax rate increases as the taxable income increases, resulting in a higher percentage of tax being paid by those with higher incomes. The idea behind this tax system is to achieve greater income equality and to make the tax system more fair by having those who can afford to pay more contribute a larger percentage of their income towards taxes. In contrast, regressive taxes have a higher percentage of tax being paid by those with lower incomes, while proportional taxes have a fixed tax rate regardless of the level of income. Company tax, on the other hand, is a tax on the profits made by companies.