Title: Tax Fairness Definition
Headings: Tax Fairness
Tax Fairness
What Is Tax Fairness?
Key Takeaways
Understanding Tax Fairness
The Individual's Right
The Common Good
Three Tax Concepts
Regressive Taxation
Progressive Taxation
Blended Taxation

Content: The Common Good
A tax regime that focuses on the good of the society as a whole might conclude that a primary function of the tax code should be the redistribution of wealth. For example, generational wealth may be taxed by a high inheritance tax, or high earners may be taxed more to bring their pay in line with other workers. Most advocates of tax fairness tend to advocate for closing loopholes in the tax code that allow certain individuals and corporations to avoid paying taxes altogether, although every one of those loopholes is strongly defended by individuals or groups who believe they deserve special treatment. Three Tax Concepts
Groups that focus on tax fairness generally choose one of three possible tax systems. These systems are regressive taxation, proportional taxation, and progressive taxation. Regressive Taxation
Regressive taxation taxes everyone the same amount, regardless of their ability to pay. As a result, the poor pay a much higher rate than the rich as a percentage of their disposable income. A state sales tax is an example of this type of taxation. The poorest consumer pays the same amount of tax for a gallon of milk as the richest person. A flat tax is often characterized as a regressive tax.