Explain the difference between a regressive tax and a progressive tax.

Question

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A regressive tax imposes a greater burden on the poor proportionately than on the rich, while a progressive tax imposes a greater burden on the rich proportionately than on the poor. Option A is incorrect because regressive taxes are not designed to create equity, but rather increase revenue for the government. Option B is incorrect as the term "Robin Hood" tax refers to taxes that take from the rich to give to the poor, which is the opposite of a regressive tax. Option C is incorrect because it describes a progressive tax, not a regressive tax.

Explain the Difference Between a Regressive Tax and a Progressive