A regressive tax takes a larger percentage of income from low-income earners than from high-income earners. Sales taxes and payroll taxes are often considered regressive.
Regressive taxes can increase economic inequality and place disproportionate burdens on those least able to pay, affecting social mobility and economic justice.
Regressive doesn't mean the tax amount is higher for low incomes—it means the percentage of income paid is higher.
Regressive taxes can increase economic inequality and place disproportionate burdens on those least able to pay, affecting social mobility and economic justice.
Regressive doesn't mean the tax amount is higher for low incomes—it means the percentage of income paid is higher.