Which type of taxation takes a larger share of the income of low-income groups?

Question

Quizplus · Accepted Answer

Regressive taxation takes a larger share of income from low-income groups, as the tax rate decreases as income increases. This means that those with lower incomes pay a higher percentage of their income in taxes compared to those with higher incomes. Progressive taxation, on the other hand, works in the opposite way, with the tax rate increasing as income increases, so those with higher incomes pay a higher percentage of their income in taxes. Proportional (flat) taxation takes the same percentage of income from all individuals, regardless of income level, while retroactive taxation applies a tax rate to income that has already been earned, which is not relevant to this question.

Which Type of Taxation Takes a Larger Share of the Income