regressive

Examples of regressive in the following topics:

• Comparing Marginal and Average Tax Rates

  • Taxes can be evaluated based on an average impact or a marginal impact and can be categorized as progressive, regressive, or proportional.
  • The opposite of a progressive tax is a regressive tax, where the relative tax rate or burden increases as an individual's ability to pay it decreases.
  • A regressive tax is a tax imposed in such a manner that the average tax rate decreases as the amount subject to taxation increases .
  • "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, where the average tax rate exceeds the marginal tax rate.
  • Graph demonstrates a progressive tax distribution on income that becomes regressive for top earners.

• Taxes

  • Regressive Tax:In a regressive tax system, poorer families pay a higher tax rate.
  • Although a regressive tax system is never explicitly used, some claim a sales tax is a type of regressive tax.

• Trading off Equity and Efficiency

  • At the highest income tax rate, income taxes can become regressive, since high earners are only subject to a constant albeit highest rate on their income.
  • Income tax is a progressive tax that assumes a regressive nature at the highest tax rate.
  • Explain tax equity in relation to the progressive, proportional, and regressive nature of taxes.

• How Income is Allocated

  • Policy reforms and regressive taxation have promoted disparity but are relatively minor contributors to existing inequality.

• What Taxes Do

  • Sales tax is a form of regressive taxation; the liability is based on the percentage of income consumed, which is higher for low income earners.
  • As a result, individuals earning a relatively lower income will pay a higher proportion of income in the form of sales tax, defining the regressive nature of the tax.

• Foundations of "Science"

  • Correlation, analysis of variance and regression can be used to relate different aspects (variables) in the data set.