Fact Check: The U.S. has a federal income tax system that is progressive.
What We Know
The United States employs a progressive federal income tax system, meaning that tax rates increase as income rises. According to the IRS, the federal income tax has seven tax rates for the year 2025: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Each of these rates applies to specific income brackets, which are adjusted annually for inflation. For instance, the top rate of 37% applies to single taxpayers earning over $626,350 and married couples filing jointly earning over $751,600 (IRS, 2024).
The structure of the tax system allows individuals to pay a lower rate on their initial income and progressively higher rates on income that exceeds certain thresholds. This is a hallmark of a progressive tax system, where the effective tax rate increases with income. The IRS outlines that as taxpayers move into higher income brackets, they only pay the higher rate on the income that falls within that bracket, not on their entire income (IRS, 2025).
Analysis
The claim that the U.S. has a progressive federal income tax system is supported by multiple credible sources, including the IRS and tax policy organizations. The IRS provides detailed information on tax brackets and rates, confirming the progressive nature of the tax system (IRS, 2024). The Tax Foundation also corroborates this by stating that the federal income tax system is structured to impose higher rates on higher income levels, which aligns with the definition of a progressive tax system.
Critically assessing the sources, the IRS is the authoritative body responsible for tax administration in the United States, making its information highly reliable. The Tax Foundation, a non-profit organization focused on tax policy, is also a reputable source, providing analysis and data on tax structures. Both sources present consistent information regarding the progressive nature of the U.S. tax system.
While there are discussions about the effectiveness and fairness of the progressive tax system, these do not negate the fact that the system itself is designed to be progressive. The adjustments for inflation, as noted in the IRS announcements, ensure that the tax brackets remain relevant and that taxpayers are not unfairly pushed into higher tax brackets due to inflation alone (IRS, 2024).
Conclusion
The verdict on the claim that "The U.S. has a federal income tax system that is progressive" is True. The evidence from reliable sources clearly demonstrates that the U.S. federal income tax system is structured to impose higher tax rates on higher income levels, characteristic of a progressive tax system.
