Progressive taxes in America do NOT mean that all income for wealthier people is taxed higher. We have a bracketed system, which means that people in the top tax bracket are only taxed at the top rate on their income that falls above the top bracket minimum. For example, no matter how rich they are, a married couple would be taxed at the 10% rate on the first $16,700 they make. Any income they earn between $16,700 and $67,900 is taxed at 15%. Any income they have in the next bracket will be taxed at 25%, followed by 28%, 33%, and 35% for any income over $372,500.
For 2008, the Federal tax brackets for a single (unmarried) person are:
1) 10%: from $0 to $8,025
2) 15%: from $8,026 to $32,550
3) 25%: from $32,551 to $78,850
4) 28%: from $78,851 to $164,550
5) 33%: from $164,551 to $357,700
6) 35%: $357,701 and above
And here is the breakdown of American wages by household (not individual):
28.22% earn less than $25,000 per year
26.65% earn between $25,000 and $50,000
18.27% earn between $50,000 and $75,000
10.93% earn between $75,000 and $100,000
15.73% earn over $100,000
Just a small fraction earn millions
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