Regressive tax

regressiveregressive taxationburdening the poordifferential taxationhit low-income households disproportionatelyregressive changes in distributionregressive rateregressive sales taxregressive system of taxationtax
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.wikipedia
130 Related Articles

Tax

taxationtaxeslevy
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.
The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive.

Progressive tax

progressiveprogressive taxationprogressive income tax
The opposite of a regressive tax is a progressive tax, in which the average tax rate increases as the amount subject to taxation rises In between is a flat or proportional tax, where the tax rate is fixed as the amount subject to taxation increases.
The opposite of a progressive tax is a regressive tax, where the average tax rate or burden decreases as an individual's ability to pay increases.

Poll tax

head taxpoll taxespoll-tax
Poll taxes are considered very regressive taxes, and are usually very unpopular and have been implicated in many uprisings.

Proportional tax

proportionalproportion to their possessionsproportional income tax
The opposite of a regressive tax is a progressive tax, in which the average tax rate increases as the amount subject to taxation rises In between is a flat or proportional tax, where the tax rate is fixed as the amount subject to taxation increases.
The opposite of a progressive tax is a regressive tax, where the tax rate decreases as the amount subject to taxation increases.

Lump-sum tax

lump sumlump-sum
It is one of the various modes used for taxation: income, things owned (property taxes), money spent (sales taxes), miscellaneous (excise taxes), etc. It is a regressive tax, such that the lower the income is, the higher the percentage of income applicable to the tax.

Fat tax

obesity taxes
Since the poor spend a greater proportion of their income on food, a fat tax might be regressive.

Fuel tax

gas taxgasoline taxfuel taxes
Fuel taxes are often considered regressive taxes.

Carbon tax

carbon taxestaxcarbon levy
To prevent them being regressive taxes carbon tax revenues can be spent on low-income groups.

Tax rate

marginal tax ratetax rateseffective tax rate
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Sin tax

sin taxesliquor taxcigarette and tobacco taxes
However, these taxes have often been criticized for burdening the poor, taxing the physically and mentally dependent, and being part of a nanny state.

Sales tax

salessales taxesnational sales tax
Because the rate of a sales tax does not change based on a person's income or wealth, sales taxes are generally considered regressive.

Progressivity in United States income tax

progressive rate structure of federal income taxationregressivity
For example, the payroll tax system (FICA), a 12.4% Social Security tax on wages up to $117,000 (for 2013) and a 2.9% Medicare tax (a 15.3% total tax that is often split between employee and employer) is called a regressive tax on income with no standard deduction or personal exemptions but in effect is forced savings which return to the payer in the form of retirement benefits and health care.

Suits index

A proportional tax (for example, where each unit pays an equal fraction of income) has a Suits index of zero, and a regressive tax (for example, where lower income tax units pay a greater fraction of income in tax) has a negative Suits index.

Value-added tax

VATvalue added taxGoods and Services Tax
Some critics consider it to be a regressive tax, meaning that the poor pay more, as a percentage of their income, than the rich.

Supply management (Canada)

supply managementDairy cartelprotected dairy market
This has been criticized as a regressive tax on the poor (around 37 cents per litre), for whom food is a large portion of their budget, and who are in effect subsidizing well-off farmers.

Poverty

poorlow-incomeindigent
In terms of individual income and wealth, a regressive tax imposes a greater burden (relative to resources) on the poor than on the rich: there is an inverse relationship between the tax rate and the taxpayer's ability to pay, as measured by assets, consumption, or income.

Tax incidence

tax burdenburden of a taxeconomic burden
These taxes tend to reduce the tax burden of the people with a higher ability to pay, as they shift the relative burden increasingly to those with a lower ability to pay.

Demography

demographicdemographicsdemographer
The regressivity of a particular tax can also factor the propensity of the taxpayers to engage in the taxed activity relative to their resources (the demographics of the tax base).

Income elasticity of demand

income elasticityIncome elasticity of demand (YED)
To measure the effect, the income elasticity of the good being taxed as well as the income effect on consumption must be considered.

Income–consumption curve

income effectIncome-consumption curveincome effect.
To measure the effect, the income elasticity of the good being taxed as well as the income effect on consumption must be considered.

Pigovian tax

Pigouvian taxPigouvian Taxesexcise tax