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A '''Regressive Tax''' is when everyone is taxed a fixed dollar amount.  Essentially, a regressive tax causes those earning lower incomes to pay a greater percentage of their income.  This acts as an incentive to force those earning lower incomes to work to earn higher incomes, thus reducing their effective tax rate.
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A '''Regressive Tax''' is when everyone is taxed a fixed dollar amount.  Essentially, a regressive tax causes those earning lower incomes to pay a greater percentage of their income.  This acts as an incentive to force those earning lower incomes to work to earn higher incomes, thus reducing their effective [[tax rate]].
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[[Category:Economics]]
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