Respuesta :
Regressive taxes have greater impact on the lower-income individuals than on wealthy.
What is Regressive tax?
A tax that is levied in a way that the tax rate drops as the amount subject to taxation rises is referred to as regressive. The term "regressive" refers to a distribution effect on income or spending that advances from high to low so that the average tax rate is higher than the marginal tax rate. Because of the inverse relationship between the tax rate and the taxpayer's capacity to pay, as determined by assets, consumption, or income, regressive taxes place a heavier burden on the poor than the rich in terms of personal income and wealth. These taxes tend to shift the relative tax burden from those with higher ability to pay to those with lesser ability to pay, reducing the tax burden for those with higher ability to pay.
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