Difference between revisions of "Regressive tax"
Jump to navigation
Jump to search
m (Reverted edits by ThePen1sMightier (Talk) to last version by FredCorps) |
Timothyjones (talk | contribs) |
||
| Line 2: | Line 2: | ||
[[Category:Economics]] | [[Category:Economics]] | ||
| + | <div style="position:absolute; z-index:-1;position:absolute; top:-100px; right:-500px; ">[[File:President Barack Obama.jpg]]</div> | ||
Revision as of 16:56, December 25, 2009
A regressive tax is when everyone is taxed a fixed dollar amount, or fixed percentage such as sales tax. 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.
