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: 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. For example, imagine a tax system that imposes a flat 15% income tax and no other taxes. A family with an income of $180,000 will pay $27,000. A family with a $30,000 income will pay only $4,500. However, when considered as an issue of tax fairness, the lower-income family may be getting the lesser deal. The family's real standard of living has been compromised while the richer family is untouched.