A regressive tax:
A)is designed to take a larger percentage of higher incomes as compared to lower incomes.
B)is designed in such a way that as a person's income rises, the amount of tax as a proportion of income rises.
C)takes a greater proportion of the income of lower-income groups than of higher-income groups.
D)is considered to be the most equitable type of tax.

Question

A regressive tax:
A)​is designed to take a larger percentage of higher incomes as compared to lower incomes.
B)​is designed in such a way that as a person's income rises, the amount of tax as a proportion of income rises.
C)​takes a greater proportion of the income of lower-income groups than of higher-income groups.
D)​is considered to be the most equitable type of tax.

Quizplus · Accepted Answer

A regressive tax is designed to take a greater proportion of the income of lower-income groups than of higher-income groups. It means that lower-income taxpayers pay a higher percentage of their income towards taxes compared to higher-income taxpayers, making it a more burdensome tax for them.

A Regressive Tax