Answer: All incomes are not taxed the same because various taxation systems exist. Taxation can be implemented in any one of several ways. The rates of taxation on different types of income may vary and some types of income may not be taxed at all.
There are progressive, regressive, or proportional income taxation rates. The United States uses a progressive tax rate system that reduces the tax liability on the poor and increases it disproportionately on those with high or rising incomes.
1.Progressive tax is based on the premise that the amount of taxes paid coincides with the increase in the amount in which the rate applied increases, from low to high.
2.Regressive tax is just the opposite of progressive tax, where as the tax rate decreases as the rate on which it is applied increases.
3.Proportional tax is fixed as to the amount to of which the rate is applied, neither going up or down.