PROGRESSIVE TAX SYSTEM VS REGRESSIVE TAX SYSTEM. WHICH IS BETTER?

Taxes assessed under a progressive system are based on the taxable amount of an
individual's income. They follow an accelerating schedule, so high-income earners pay more
than low-income earners. Tax rate, along with tax liability, increases as an individual's
wealth increases. The overall outcome is that higher earners pay a higher percentage of
taxes and more money in taxes than do lower-income earners. This sort of system is meant
to affect higher-income people more than low- or middle-class earners to reflect the
presumption that they can afford to pay more.

Low-income individuals pay a higher amount of their incomes in taxes compared to high-
income earners under a regressive tax system because the government assesses tax as a
percentage of the value of the asset that a taxpayer purchases or owns. This type of tax has
no correlation with an individual's earnings or income level. Regressive taxes include
property taxes, sales taxes on goods, and excise taxes on consumables, such as gasoline or
airfare. Excise taxes are fixed and they are included in the price of the product or service.

Conformably with the foregoing, we believe that the better system is the Progressive tax
System because the it allows those who have higher salaries to pay higher taxes than
those who have less. Supporters of this system claimed that this is the fairest system
because it lessens the tax burden of the poor. It is not about initiating reform, but rather an
attempt to ensure taxation is “fair” to all payers. In this way, those who have more in life
will have to pay more while those who have less will have to pay less. The same shall have
a lesser impact to those who are more capable of paying than those who do not even have
foods on their table to eat. Incidentally, the constitutional provision that the Congress shall
evolve a “Progressive System of Taxation” has been ruled by the Supreme Court as merely
permissive and not mandatory. (Philippine Airlines Inc. vs. Secretary of Finance, et al, GR.
NO. 115852)

Source: www.investopedia.com