Review:
Regressive Taxation
overall review score: 1.5
⭐⭐
score is between 0 and 5
Regressive taxation is a tax system where the tax rate decreases as the amount subject to taxation increases. This means that individuals with lower incomes pay a higher percentage of their income in taxes compared to those with higher incomes.
Key Features
- Tax rate decreases as income increases
- Disproportionately affects low-income individuals
- Critiqued for exacerbating income inequality
Pros
- No pros listed
Cons
- Disproportionately burdens low-income individuals
- Contributes to income inequality
- Critiqued for being unfair