From Wikipedia, the free encyclopedia.
A regressive tax is a tax which places proportionately more of a burden on those with lower incomes. The opposite of a regressive tax is a Progressive_tax
Examples of regressive taxes include:
- Value-added tax or other sales tax on groceries. Since food is a basic necessity, it takes up a much higher percentage of the budget of a person or family with a lower income.
- The Poll tax which is a fixed tax for each person: since each person pays the same amount, it is a lower proportion of people with higher incomes.
