The three types of taxes are the proportional tax, the progressive tax, and the regressive tax. A proportional tax imposes the same percentage of taxation on everyone, regardless of income. If the percentage tax rate is constant, the average tax rate is constant, regardless of income. This means that if a person's income goes up, the percentage of total income paid in taxes doesn't change. The second tax, the progressive tax , imposes a higher percentage rate of taxation on those with higher incomes.
Progressive taxes use a marginal tax rate that increases as the amount of taxable income increases.
Therefore, the percentage of income paid in taxes increases as income goes up. The final tax is the regressive tax , which imposes a higher percentage rate of taxation on low incomes than on high incomes. The sales tax in the largest source of revenue for states. Rates for the sales tax vary for each state. By definition, a sales tax is a general tax levied on consumer purchases of nearly all products.