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: Many studies show that people who earn less tend to consume more harmful products such as tobacco or alcohol relative to individuals who earn more. 3. Property tax
Property taxes are regressive in theory. They are based on the property’s value
Real Estate Real estate is real property that consists of land and improvements, which include buildings, fixtures, roads, structures, and utility systems. Property rights give a title of ownership to the land, improvements, and natural resources such as minerals, plants, animals, water, etc. and not on the owner’s income. Thus, if a person with a low income and a person with a high income own properties with the same value, they will pay the same tax amount. Therefore, property tax is considered regressive. However, in reality, wealthier people tend to purchase properties of higher value than poor people. Therefore, property tax is – effectively – the least regressive in our list.