Tony lives in a state where low-income residents have to pay a higher percentage of their income to taxes than high-income residents. This is an example of a _____ tax.

Question

Quizplus · Accepted Answer

A regressive tax system is one where the tax burden falls more heavily on low-income earners than on high-income earners. This is because the tax rate decreases as income increases, meaning that low-income earners pay a higher percentage of their income in taxes than high-income earners.

Tony Lives in a State Where Low-Income Residents Have to Pay