If taxpayers pay a smaller fraction of their income in taxes as their incomes rise, the tax is ________ and if taxpayers pay a larger fraction of their income in taxes as their income rise, the tax is ________.

Question

Quizplus · Accepted Answer

A regressive tax is one under which the proportion of income paid in taxes declines as income rises, and a progressive tax is one under which the proportion of income paid in taxes rises as income rises.

If Taxpayers Pay a Smaller Fraction of Their Income in Taxes