A tax that takes a smaller proportion of one's income as that income rises is called a(n)________ tax.

Question

Quizplus · Accepted Answer

A regressive tax is characterized by taking a smaller proportion of income as the income rises, meaning that lower-income individuals pay a higher percentage of their income compared to higher-income individuals. This is in contrast to a progressive tax, where the tax rate increases as the taxable amount increases.

A Tax That Takes a Smaller Proportion of One's Income