A tax that places a greater burden on lower-income people is known as a ______.

Question

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A tax that places a greater burden on lower-income people is known as a regressive tax. This is because regressive taxes take a larger percentage of income from those with lower incomes, while those with higher incomes are typically able to absorb the taxes more easily. Progressive taxes, on the other hand, take a larger percentage of income from those with higher incomes. Distributive tax and disruptive tax are not commonly used tax terms.

A Tax That Places a Greater Burden on Lower-Income People