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A regressive tax is a tax system where the tax rate decreases as the income level increases, meaning that lower-income individuals pay a higher percentage of their income compared to wealthier individuals. Common examples include sales taxes and excise taxes, where everyone pays the same rate regardless of income. This can disproportionately affect lower-income households, as they tend to spend a larger portion of their income on taxable goods and services. Consequently, regressive taxes can exacerbate income inequality.
What else can I help you with?
What type of tax is one in which the rate of tax doesn't change with a change in the tax base?
regressive
What type of tax is the sales tax?
A sales tax is a consumption tax, usually paid by the consumer at the point of purchase. For A+ answer is regressive
Is the sales tax progressive or regressive?
regressive
Is payroll tax regressive or progressive?
Regressive
What kind of tax is the sales tax?
Regressive tax
A sales tax on food items is what type of tax?
indirect tax
What type of tax is one in which the rate of tax doesn't change with a change in the tax base?
regressive
Which type of tax falls more heavily on the rich than on the poor?
regressive tax. (:
Is payroll tax regressive or progressive?
Regressive
Is the sales tax progressive or regressive?
regressive
What type of tax is the sales tax?
A sales tax is a consumption tax, usually paid by the consumer at the point of purchase. For A+ answer is regressive
A regressive tax is BEST defined as a rate of tax?
A regressive tax is a rate of tax that falls as the income rises.
Why is a 5 percent sales tax on gasoline regressive?
This is a fixed rate (proportional) tax, not a regressive tax.
What is the principle that justifies a regressive tax?
The benefits-received principle justifies a regressive tax.
What is the name of the tax where everyone is taxed the same?
This type of tax is a called a 'flat' rate tax. This means that everyone must pay the same percentage of tax, but how much you actually pay depends on income and usage levels.
What is the advantage of regressive tax?
regressive tax encourages earning. this is such that as for the case of progressive tax whereby the more you earn, the more taxes you pay in the case of regressive tax, the more you earn the more you get to keep.
What kind of tax is the sales tax?
Regressive tax
