If income increases as tax rates decline, it is a ______________ tax system.

Question

Quizplus · Accepted Answer

A regressive tax system is one in which the tax burden decreases as income increases. As tax rates decline, individuals with higher incomes benefit more than those with lower incomes, leading to a widening income gap. This type of system is considered regressive because it disproportionately benefits wealthy individuals and makes it more difficult for low-income individuals to make ends meet.

If Income Increases as Tax Rates Decline, It Is a ______________