Tax systems with regressive rate structures result in a proportionally heavier tax burden on persons with smaller tax bases.

Question

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A regressive tax structure means that the tax rate decreases as taxable income increases. This results in persons with smaller tax bases, such as low-income earners, paying a higher percentage of their income in taxes compared to high-income earners, who have larger tax bases. Therefore, a regressive rate structure results in a proportionally heavier tax burden on persons with smaller tax bases.

Tax Systems with Regressive Rate Structures Result in a Proportionally