Title: The Pros & Cons of Regressive Taxation | Sapling
Headings: The Pros & Cons of Regressive Taxation
The Pros & Cons of Regressive Taxation
Freedom of Choice
Discouraging Consumption
Harming the Poor
Decreased Revenues

Content: The Pros & Cons of Regressive Taxation | Sapling
The Basics
Taxes
The Pros & Cons of Regressive Taxation
By Chris Joseph
A woman pulls out cash from her wallet to pay for her goods and the sales tax. Image Credit: boryanam/iStock/GettyImages
In general, systems of taxation are proportional, progressive or regressive in nature. A proportional system is one in which everyone pays the same percentage in taxes. In a progressive system, such as the United States federal tax code, the percentage of taxation increases as income levels increase. In a regressive system, all consumers pay the same dollar amount, regardless of income level. As with all forms of taxation, a regressive system offers certain advantages and disadvantages. Advertisement
Freedom of Choice
When a regressive tax is based on consumption such as a sales tax, it can introduce an element of freedom of choice. Only those who choose to use a particular product or service must pay the tax, and those who consume more frequently pay more taxes than occasional users. People also have some measure of control of how much they pay in taxes.