If a tax is levied as a proportional tax, it cannot be regressive in its actual effect.

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A proportional tax is a tax where the tax rate is fixed regardless of a taxpayer's income or ability to pay. While it may seem fair in theory, in practice it can be regressive because it may impact low-income taxpayers more heavily than high-income taxpayers. For example, if a 10% proportional tax is levied on basic necessities like food and clothing, low-income earners will feel the impact of the tax more than high-income earners, who may be able to absorb the added expense more easily.

If a Tax Is Levied as a Proportional Tax, It