Regressive Tax

Regressive Tax means:
a tax that either (1) remains the same regardless of the amount involved, or (2) decreases as the amount to which the tax is applied increases. A tax that takes a larger percentage of income from low-income groups than from high-income groups. A regressive tax takes a higher percentage of the earnings of a low-income family than of those of a high-income family. A sales tax on food is considered regressive because low-income people pay the same amount of tax on a loaf of bread, for example, as do high-income people. A value-added tax is also regressive.

See Regressive Tax and Regressive Tax.

See Indirect Tax in the U.S. Reference and Indirect Tax in the International reference.

See Sales tax in the U.S. Encyclopedia and Sales tax in the International Encyclopedia

Description and Definition of Regressive Tax

A tax that takes a smaller percentage from those with high income than from those with lower income.

Resources

See Also

Further Reading

• Regressive Tax in the West's Tax Law Dictionary
• Regressive Tax in “A Dictionary of Taxation”