Regressive tax


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Regressive tax

A tax system that provides that average tax rates decrease with increases in individuals' income brackets.

Regressive Tax

A tax that is applied to all persons equally and therefore adversely affects persons with lower income. For example, if a city institutes a 5% sale tax on groceries, everyone who buys groceries (that is, everyone) must pay 5% extra. Because the poor and the lower middle class make less money than other classes, the extra 5% is more difficult for them to afford. As a result, regressive taxes are less popular among left-wing political groups. However, proponents argue that regressive taxes are fair, at least to a certain extent, because they do not punish success.

regressive tax

A tax that has a rate that declines as the amount to be taxed increases. In terms of income, federal and state taxation of cigarettes is regressive because low-income smokers pay a higher rate of taxation in terms of their income than high-income smokers do. A system of regressive taxation tends to free more funds for investment because high-income individuals tend to save a greater portion of their income. However, a regressive tax is often considered socially and politically unacceptable. Compare progressive tax.

Regressive tax.

A regressive or flat income tax system taxes everyone at the same rate, as sales tax does.

Advocates say it's simpler and does away with the kinds of tax breaks that tend to favor the wealthy. Opponents say that middle-income taxpayers carry too large a proportion of the total tax bill.

References in periodicals archive ?
The solitary kid (son) ofAnnu was died for the quest of a low-priced pill but on tax of Annu, yet his rulers were feeding their dollies (dogs) with highcost feeds' The pertaining situation was more pathetic and pitiable for all those poor individuals who could dare to defy the regressive tax system of the Pakistan, he may doesn't cost to bear the price of the 'cloth, cover the corpse' but Govt would not tolerate his negligency in paying the tax.
Senator Russ Fulcher (R), who is sponsoring the plan with Senator Cliff Bayer (R), has called grocery tax "the most regressive tax there is.
Stamp duty is a regressive tax, which charges families, who want to own their own home, on their already taxed income.
Finally, ensuring a stable and low level of inflation is critical: inflation, after all, is a very regressive tax that affects mostly the poorer cohorts of the income distribution.
However, they would also pay more in beverage taxes, making it a regressive tax," the researcher added.
Council tax is a regressive tax and any rise disproportionately affects the poorer residents in the borough.
GRIM Shadow treasury minister Owen Smith said: "This independent report confirms what Labour have always argued but which out-of-touch ministers continue to deny - VAT is a regressive tax which hits the poorest harder than the richest.
This study examined whether children living in states with more progressive state tax codes were healthier than children who were living in states with more regressive tax codes.
The Arkansas State Chamber of Commerce/Associated Industries of Arkansas has been instrumental in previous legislative sessions in helping get this regressive tax rate reduced, and we applaud members of the Legislature who are working to complete this important task.
Higher gas prices amount to a regressive tax increase on the American consumer, with all that implies for the ability of the U.
EUR[pounds sterling]It would be a great shame if Spain implemented the same regressive tax policy.
This is an unfair and regressive tax hike that is hitting millions of hard-working Scots families in the pocket.