A regressive tax is a tax system where the tax rate decreases as the income of the taxpayer increases, meaning that lower-income individuals pay a higher percentage of their income compared to higher-income individuals. This type of taxation can disproportionately affect those with less income, leading to concerns about equity and fairness in tax policy. Often, regressive taxes are found in sales taxes and certain excise taxes, which take a larger share of income from low earners than from high earners.
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