Examples of Progressive and Proportional Tax RatesProgressiveIf Linda has taxable income of $25,000, her Federal income might be $2,500, for an averagetax rate of 10%. If Linda’s taxable income is $80,000, her Federal income tax might be $16,000 for an average tax rate of 20%. The tax is progressivebecause higher rates are applied to greater amounts of taxable income.Proportional (sometimes referred to, in a societal sense, as regressive)Assume that a jurisdiction applies a 30% tax rate to all taxable income. If Bill has $10,000 of taxable income, he will pay a tax of $3,000. If Sam has taxable income of $50,000, he will pay a tax of $15,000. If this constant rate is applied throughout the rate structure, the tax is proportional.