If you receive a raise at work, what taxation principle will apply to determine your taxes?

The principle that applies in this situation is progressive taxation. In a progressive tax system, individuals pay a higher percentage of income in taxes as their income increases. When you receive a raise, your overall income increases, which may push you into a higher tax bracket. As a result, the additional income from the raise will be taxed at a higher rate compared to your previous income levels. This system is designed to ensure that those who have a higher ability to pay contribute a larger share towards funding government services and programs.

Additionally, understanding that other taxation principles, such as regressive taxation, flat rate taxation, and proportional taxation, operate differently further illustrates why progressive taxation is the relevant concept here. Regressive taxation imposes a greater burden on lower-income individuals, while flat rate taxation applies a single tax rate for all income levels, and proportional taxation means everyone pays the same percentage regardless of income, which does not account for income increases related to raises. Thus, the progressive taxation principle clearly highlights how increases in income, such as those from raises, lead to higher tax rates applied to those additional earnings.