Assuming wealthier people are more likely to experience capital gains than poor people,a tax system that applies a lower rate to this type of income is likely to be

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A tax system that applies a lower rate to capital gains income is regressive because it benefits the wealthy more than the poor. The wealthy are more likely to earn income from capital gains, so a lower tax rate on this income benefits them more than the poor. This increases the income gap between the rich and poor, making the tax system unfair to the poor.

Assuming Wealthier People Are More Likely to Experience Capital Gains