> A regressive tax is where the tax rate decreases as the amount subject to taxation increases.
By your definition, there are almost no regressive taxes. I believe the most common usage is as others have pointed out - regressive with respect to ability to pay.
Sales tax is commonly described as regressive, and yet we all pay the same amount on a given item. It's regressive because it hits the necessities we all buy, putting a proportionately higher burden on the low income.
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Re: Perhaps the OP means that...
Date: 2009-08-27 12:08 pm (UTC)By your definition, there are almost no regressive taxes. I believe the most common usage is as others have pointed out - regressive with respect to ability to pay.
Sales tax is commonly described as regressive, and yet we all pay the same amount on a given item. It's regressive because it hits the necessities we all buy, putting a proportionately higher burden on the low income.