Difference between revisions of "Regressive tax"
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*[[Flat tax]] | *[[Flat tax]] | ||
*[[Progressive tax]] | *[[Progressive tax]] | ||
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| + | [[Category : Economic Preparedness]] | ||
[[Category:Economics]] | [[Category:Economics]] | ||
[[Category:Taxation]] | [[Category:Taxation]] | ||
Revision as of 11:54, February 21, 2015
A regressive tax is a form of taxation where an individual's effective tax rate decreases as their amount of income increases. Essentially, a regressive tax causes those earning lower incomes to pay a greater percentage of their income in taxes. In the United States, sales taxes and payroll taxes (Social Security and Medicare) are the two most common examples of regressive taxes.
See Also
