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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 tax]]es and [[payroll taxes]] ([[Social Security]] and [[Medicare]]) are the two most common examples of regressive taxes.

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 tax]]es and [[payroll taxes]] ([[Social Security]] and [[Medicare]]) are the two most common examples of regressive taxes.

==See Also==

==See also==

*[[Flat tax]]

*[[Flat tax]]

*[[Progressive tax]]

*[[Progressive tax]]

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{{Economic preparedness topics}}

[[Category : Economic Preparedness]]

[[Category:Economic Preparedness]]

[[Category:Economics]]

[[Category:Economics]]

[[Category:Taxation]]

[[Category:Taxation]]