Difference between revisions of "Regressive tax"
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(New page: '''Regressive Tax''' is when everyone is taxed at the same rate. Generally it has a harder impact on the poor than it does on the wealthy. == References == U.S Government and Politics) |
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| − | '''Regressive Tax''' is when everyone is taxed | + | 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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Revision as of 04:32, October 5, 2007
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.