A tax that exacts a lower proportion of income from higher-income people than it does from lower-income households is a regressive tax.

Question

Quizplus · Accepted Answer

A regressive tax imposes a greater burden on lower-income individuals than on higher-income earners because it takes a smaller percentage of income as the income increases, effectively impacting lower-income households more heavily.

A Tax That Exacts a Lower Proportion of Income from Higher-Income