The working poor are regressively taxed, but since more expenditure goes to them, the net tax burden after transfers may actually be progressive.

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The working poor are often subject to regressive taxes like sales tax, but they also receive more government transfers and benefits like the Earned Income Tax Credit and Medicaid. As a result, the overall tax burden after transfers may actually be progressive, meaning they pay a smaller percentage of their income in taxes than higher-income individuals.

The Working Poor Are Regressively Taxed, but Since More Expenditure