A tax is regressive if it collects a:
A) larger amount as income rises.
B) constant amount as income rises.
C) smaller fraction of income as income falls.
D) smaller fraction of income as income rises.

Question

Quizplus · Accepted Answer

A tax is regressive if it collects a smaller fraction of income as income rises. This means that individuals with lower incomes will pay a higher percentage of their income in taxes compared to those with higher incomes.

A Tax Is Regressive If It Collects A