A tax rate that increases as the tax base decreases is an example of what kind of tax rate structure?

Question

Quizplus · Accepted Answer

A regressive tax rate structure means that as the tax base (income, for example) decreases, the tax rate increases disproportionately. This is often seen in sales taxes or flat taxes, where everyone is taxed at the same rate regardless of income level. This can have a greater impact on lower income earners, who may spend a larger proportion of their income on taxable goods and services.

A Tax Rate That Increases as the Tax Base Decreases