Title: Regressive Tax - Understanding How a Regressive Tax System Works
Headings: Regressive Tax
Regressive Tax
What is a Regressive Tax?
Types of Regressive Tax
1. Sales tax
2. Sin tax
3. Property tax
Tax Example
Additional Resources

Content: Regressive Tax - Understanding How a Regressive Tax System Works
Regressive Tax
What is a Regressive Tax? A regressive tax is a tax applied in a way that the tax rate decreases with the increase of the taxpayer’s income
Remuneration Remuneration is any type of compensation or payment that an individual or employee receives as payment for their services or the work that they do for an organization or company. It includes whatever base salary an employee receives, along with other types of payment that accrue during the course of their work, which
. This type of tax places more burden on low-income demographics rather than the high-income population. The imposed burden is determined by the percentage of the tax amount relative to income. Generally, a regressive tax is a tax that is an absolute currency amount levied uniformly to all of the population. Therefore, the low-income population carries a bigger burden than those with high income because the tax amount takes a greater percentage of their income, although the tax dollar amount is the same. A regressive tax system is not commonly used for income taxation. However, it is used with many other taxes, such as sales or sin tax. The regressive tax is directly opposite to progressive tax
Progressive Tax A progressive tax is a tax rate that increases as the taxable value goes up.