Difference between revisions of "Regressive tax"
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(rm what appears to me to be parody (and which I cannot substaniate in any source I'm aware of)) |
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[[Category:Economics]] | [[Category:Economics]] | ||
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Revision as of 00:43, December 9, 2014
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.