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Higher tax ratio on poorer sources
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. "Regressive" describes a distribution
Regressive_tax
Fixed fraction of source
where the average tax rate is less than the marginal tax rate. The opposite of a progressive tax is a regressive tax, where the tax rate decreases as
Proportional_tax
Type of tax
proportional tax. Implementations are often progressive due to exemptions, or regressive in case of a maximum taxable amount. There are various tax systems
Flat_tax
Division at which a tax rate changes
Tax brackets are the divisions at which tax rates change in a progressive tax system (or an explicitly regressive tax system, though that is rarer). Essentially
Tax_bracket
UK goods and services tax policy
burden of the tax (the consumer). Opponents of VAT argue that it is a regressive tax because the poorest people spend a higher proportion of their disposable
Value-added tax in the United Kingdom
Value-added_tax_in_the_United_Kingdom
2025 legislation in the United States
Several think tanks, experts, and opponents criticized the bill over its regressive tax structure, described many of its policies as gimmicks, and argued the
One_Big_Beautiful_Bill_Act
Value added tax in Singapore
countries that has GST/VAT in place, critics consider the idea to be a regressive tax, meaning the poor pay more, as a percentage of their income, than the
Goods and Services Tax (Singapore)
Goods_and_Services_Tax_(Singapore)
Proportion of income paid in taxes at different income levels
selective consumption taxes such as Excise taxes. Systems that rely heavily on broad consumption taxes tend to be more regressive relative to annual income
Tax_burden
Higher tax on richer sources
higher ability to pay. The opposite of a progressive tax is a regressive tax, such as a sales tax or tariffs, where the poor pay a larger proportion of
Progressive_tax
Tax on the sales of certain goods and services
a regressive tax as "[a] tax that takes a larger percentage from low-income people than from high-income people. A regressive tax is generally a tax that
Sales_tax
Tax that is not visible to the taxpayer
are highly regressive. Travel taxes Utilities taxes According to a 1998 study, taxes take up 48% of the price of gasoline. Inflation tax It is a hidden
Hidden_tax
US federal payroll tax to fund Social Security and Medicare
generally considered to be a regressive tax. Since 1990, the employee's share of the Social Security portion of the FICA tax has been 6.2% of gross compensation
Federal Insurance Contributions Act
Federal_Insurance_Contributions_Act
Form of consumption tax
with GST in New Zealand). VAT has been criticized by opponents as a regressive tax, meaning that the poor pay more, as a percentage of their income, relative
Value-added_tax
Compulsory levy on energy released from a source
Service as regressive taxes. Fuels used to power agricultural vehicles, as well as home heating oil which is similar to diesel, are taxed at a different
Fuel_tax
Type of value added tax used in Australia
extra tax. Others also point out that the more important question to ask is not whether GST is regressive, but whether GST is more regressive than the
Goods and services tax (Australia)
Goods_and_services_tax_(Australia)
Compulsory contribution to state revenue
lump-sum tax is a tax that is a fixed amount, no matter the change in circumstance of the taxed entity. This in actuality is a regressive tax as those
Tax
Fixed tax paid by every liable individual
after Reconstruction). Poll taxes are regressive with respect to income, meaning the higher someone's income is, the lower the tax is as a proportion of income:
Poll_tax
Controversial system of taxation from 1989 to 1993
tax on property with a fixed tax on individuals, with limited adjustment for a person's financial circumstance. As such, it was viewed as regressive and
Poll_tax_(Great_Britain)
Total or partial exemption from tax
economically costly, and distortionary, as well as having regressive economic effects. Tax incentives can cause negative effects on a government's financial
Tax_incentive
Type of tax
this tax would apply to the ten dollar difference between the two amounts. A simple value-added tax is proportional to consumption but is regressive on
Consumption_tax
provisions are deemed illegal and void. The Russian tax system tends to use moderate flat or regressive tax rates. It is highly centralized for a federal state
Taxation_in_Russia
Taxation on a lump-sum basis
etc. It is a regressive tax, such that the lower the income is, the higher the percentage of income applicable to the tax. A lump-sum tax would be ideal
Lump-sum_tax
Type of tax
Moreover, the regressivity of indirect tax systems affects the total progressivity of tax systems of countries given the importance of indirect tax revenues
Indirect_tax
Tax levied on trades of financial instruments such as stocks, bonds, or derivatives
funds. Other studies have suggested that the financial transaction tax is regressive in application—particularly the Stamp Duty in the UK, which includes
Financial_transaction_tax
Ballot initiative which capped property tax at 1% and yearly increases at 2%
equity, which are exempt from wealth taxes, ITEP says regressive state tax distributions that rely on property taxes on real property can worsen inequality
1978 California Proposition 13
1978_California_Proposition_13
Proposal to reform United States tax code
size. Called a "prebate," the monthly payment offsets the regressive nature of a sales tax up to the poverty level. First introduced into the United States
FairTax
Aspect of tax law
by tax rates List of countries by tax revenue as percentage of GDP Progressive tax Proportional tax Regressive tax Tax exporting Tax incidence Tax rates
Tax_rate
Measure of tax progressiveness
a regressive tax (for example, where lower income tax units pay a greater fraction of income in tax) has a negative Suits index. A theoretical tax where
Suits_index
Surcharge on fattening foods or drinks
spend a greater proportion of their income on food, a fat tax might be regressive. Taxing foods that provide primarily calories, with little other nutritional
Fat_tax
Tax on activity generating negative externalities
A Pigouvian tax (also spelled Pigovian tax) is a tax on a market activity that generates negative externalities, that is, costs incurred by third parties
Pigouvian_tax
Tax incentive
A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state
Tax_credit
Form of taxation in Australia
Income tax in Australia is imposed by the federal government on the taxable income of individuals and corporations. State governments have not imposed
Income_tax_in_Australia
higher crime rates, and suicide. Others argue that gambling is a type of regressive tax on the individuals in local economies where gambling venues are located
Gambling_in_the_United_States
Tax on investment profits
A capital gains tax (CGT) is the tax on profits realised on the sale of a non-inventory asset. The most common capital gains are realised from the sale
Capital_gains_tax
Value-added tax in India
and Services Tax (GST) is an indirect tax introduced in India on 1 July 2017, replacing a range of pre-existing taxes like VAT, service tax, central excise
Goods and Services Tax (India)
Goods_and_Services_Tax_(India)
Financial crime
Tax evasion or tax fraud is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails
Tax_evasion
Place which charges very low taxes on profits
A tax haven is a term, often used pejoratively, to describe a place with very low tax rates for non-domiciled investors, even if the official rates may
Tax_haven
Excise or sales tax specifically levied on goods deemed harmful to society
market. Critics of sin tax argue that it is a regressive tax in nature and discriminates against the lower classes. Sin taxes are often assessed at a
Sin_tax
Levy on the unimproved value of land
Conversely, a tax on buildings can be said to be regressive, falling heavily on tenants who generally are poorer than the landlords "Why land value taxes are so
Land_value_tax
1729 satirical essay by Jonathan Swift
have variously claimed that the essay was a criticism of mercantilism, regressive tax legislation by the Parliament of Ireland or the Irish upper class's
A_Modest_Proposal
Tax based on taxable income
Income taxes are used in most countries around the world. The tax systems vary greatly and can consist of a flat fixed rate, progressive, or regressive, structures
Income_tax
Central government agency in India
The Income Tax Department is a government agency undertaking direct tax collection of the government of the Republic of India. It functions under the Department
Income_Tax_Department
Tax on property, particularly real estate
property tax (whose rate is expressed as a percentage or per mille, also called millage) is an ad valorem tax on the value of a property. The tax is levied
Property_tax
Tax deduction in the United States
and localities move to more regressive tax systems i.e increase their taxes (e.g by increasing sales taxes) to reduce the tax burden on the wealthy residents
State_and_local_tax_deduction
state. States that have a high concentration of skilled jobs, implement regressive tax policies, or have weaker worker protections in general tend to have
List of U.S. states and territories by income inequality
List_of_U.S._states_and_territories_by_income_inequality
Economic philosophy centered on common ownership of land
more than poorer landowners and tenants. Conversely, a tax on buildings can be said to be regressive, falling heavily on tenants who generally are poorer
Georgism
Tax on corporations
A corporate tax, also called corporation tax or company tax or corporate income tax, is a type of direct tax levied on the income or capital of corporations
Corporate_tax
proposal to replace every tax in a particular country with a single retail sales tax. To avoid having the tax being regressive, the tax system would also provide
List_of_taxes
this as prohibiting a regressive tax, although flat rate taxes (as instituted in several cantons) are held to be constitutional by tax law scholars. Moreover
Taxation_in_Switzerland
Financial optimization technique
Tax avoidance is the legal use of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable. A tax shelter
Tax_avoidance
Amount that one may deduce from taxable revenue
A tax deduction is an amount deducted from taxable income, usually based on expenses such as those incurred to produce additional income. Tax deductions
Tax_deduction
Monetary exemption from taxes that would otherwise be levied
property, income, or transactions. Tax-exempt status may provide complete relief from taxes, reduced rates, or tax on only a portion of items. Examples
Tax_exemption
Software used for tax compliance
Tax compliance software is software that assists tax compliance, and may cover income tax, corporate tax, VAT, service tax, customs, sales tax, use tax
Tax_compliance_software
Leaving a country to avoid paying taxes
A tax exile is a person who leaves a country to avoid the payment of income tax or other taxes. The term refers to an individual who already owes money
Tax_exile
gains tax, Washington State had the most regressive tax system of any state in the US. The wealthiest 1% paid just 3% of their income in state taxes, while
Capital gains tax in Washington (state)
Capital_gains_tax_in_Washington_(state)
Form of illuminati in india
income tax 7.43 (5.23%) Corporate taxes 45.99 (32.3%) Other taxes 1.83 (1.29%) Excise taxes 35.84 (25.2%) Customs duties 17.46 (12.3%) Other taxes 1.68
Income_tax_in_India
Islamic tax on non-Muslims
modified them according to Islamic religious law. Historically, the jizya tax has been understood in Islam as a fee for protection provided by the Muslim
Jizya
Measure of the economic effect of a tax
consumption, federal excise taxes tend to be regressive relative to annual income in distributional analyses, though burdens vary by the taxed items consumed. Customs
Tax_incidence
Government revenue systems at all levels
separate federal, state, and local governments with taxes imposed at each of these levels. Taxes are levied on income, payroll, property, sales, capital
Taxation_in_the_United_States
Excise on alcoholic beverages
these taxes are an excise duty, indirect tax, unit tax, user fee, commodity tax, consumption tax, luxury tax, sumptuary tax, and sin tax. Excise taxes may
Alcohol_tax
Tax on animal products
mentions a meat tax as an instrument to achieve a reduction in meat consumption Some opponents[who?] to meat taxation consider it regressive and authoritarian
Meat_tax
Representation of the relationship between taxation and government revenue
government's tax revenue. The theory reasons that because no tax revenue is raised at the extreme tax rates of 0% and 100%, there must be a tax rate between
Laffer_curve
Historic church tax in Ireland
of minister's money. Ministers' money was resented because it was a regressive tax and applied only in towns with a Catholic majority. In rural areas,
Ministers'_money
American retirement system
of this, and the fact there is no tax on unearned income, social security taxes are often viewed as being regressive. However, benefits are adjusted to
Social Security (United States)
Social_Security_(United_States)
Revenue-generating measure
tourist tax in Europe and the United States is to levy a tax on accommodation known as a hotel tax, occupancy tax, lodging tax or bed tax. The tax is levied
Tourist_tax
Tax paid after inheritance of property
International tax law distinguishes between an estate tax and an inheritance tax. An inheritance tax is a tax paid by a person who inherits money or property
Inheritance_tax
Overview of tax rates
Other taxes in the United States have a less progressive structure or a regressive structure, and legal tax avoidance loopholes change the overall tax burden
Progressivity in United States income tax
Progressivity_in_United_States_income_tax
Tax imposed on employers or employees
A payroll tax may be imposed on employers or employees. They are usually calculated as a percentage of the salaries that employers pay their employees
Payroll_tax
Type of marriage featuring equal responsibility
for these families are significant factors in the currently (2012) regressive tax system in the United States that President Barack Obama, U.S. Representative
Shared earning/shared parenting marriage
Shared_earning/shared_parenting_marriage
Tax on carbon emissions
the risk of being regressive, and sparking backlash among the public due to an increased cost of energy associated with such taxes. To avoid this and
Carbon_tax
largely offset by increases in other regressive taxes such as National Insurance contributions and Value Added Tax (VAT). In 2010, a new top rate of 50%
History of taxation in the United Kingdom
History_of_taxation_in_the_United_Kingdom
Tax on an entity's holdings of assets
A wealth tax, also called a capital tax, equity tax, or net wealth tax, is a tax on an entity's holdings of assets or an entity's net worth. This includes
Wealth_tax
Tax based on value of transaction
consumption taxes (i.e. sales tax and value-added tax) are regressive. To compensate for this, taxes on necessities are usually lower than taxes on luxury
Ad_valorem_tax
Proposed international tax scheme
The global minimum corporate tax rate, or simply the global minimum tax (abbreviated GMCT or GMCTR), is a minimum rate of tax on corporate income internationally
Global minimum corporate tax rate
Global_minimum_corporate_tax_rate
Impacts of car use
environmentally friendly initiatives. Fuel and carbon taxes have been criticized as being a regressive tax, that affect low income individuals greater than
Externalities_of_cars
incompatible—namely, that a tax can be progressive overall yet regressive for asset-rich minority groups. Renters are subject to property taxes as well. The owner's
Property tax in the United States
Property_tax_in_the_United_States
State-imposed tax to fund churches
A church tax is a tax collected by the state from members of some Christian denominations to provide financial support of churches, such as the salaries
Church_tax
New tax that is collected in a way that is not obvious
burden of taxation away from income onto consumption. Stealth taxes can be viewed as regressive, as more affluent people are less affected by VAT, for example
Stealth_tax
Tax or surcharge on soft drinks with high sugar content
will buy sugary drinks from areas where they are not taxed. The regressive component of the tax is that consumers on lower incomes would spend relatively
Sugary_drink_tax
Range of legal and illegal activities that reduce tax paid
Tax noncompliance is a range of activities that are unfavorable to a government's tax system. This may include tax avoidance, which is tax reduction by
Tax_noncompliance
Legendary woman
oppressive tax regime that was imposed upon all lower castes, "when Nangeli stood up, squeezed to the extremes of poverty by a regressive tax system, it
Nangeli
Poor people often incur higher expenses due to lack of options
index Poverty industry Poverty reduction Proletariat Redlining Regressive tax Sin tax Social inequality Social insurance Social mobility Social welfare
Cost_of_poverty
Tax on persons emigrating from a country
exit tax is a tax on persons who cease to be tax-resident in a country. It is usually a form of capital gains tax against unrealized gains. Exit tax can
Exit_tax
Proposed tax on currency transactions to reduce speculation and volatility
A Tobin tax was originally defined as a tax on all spot conversions of one currency into another. It was suggested by James Tobin, an economist who won
Tobin_tax
Practice of requiring all eligible citizens to register and vote in elections
help assure concerned voters that mandatory voting will not become a regressive tax. The impact of these fines can be mitigated by making sure they do not
Compulsory_voting
Design and implementation of tax policy maximizing social welfare
Lump-sum taxes can be either progressive or regressive, depending on what the lump sum is being applied to. A tax placed on car tags would be regressive because
Optimal_tax
Income tax paid to the government by the income-payer
Tax withholding, also known as tax retention, pay-as-you-earn tax or tax deduction at source, is income tax paid to the government by the payer of the
Tax_withholding
Area of law
tax revenue is derived or levied, e.g. income tax, estate tax, business tax, employment/payroll tax, property tax, gift tax and exports/imports tax.
Tax_law
Compulsory fee intended to discourage environmentally harmful acts
more for food. Some green tax shift proposals have been criticized as being fiscally regressive (a tax with an average tax rate that decreases as the
Environmental_tax
Canadian conservative advocacy organization
high administrative costs, and for being a "regressive tax". In 2008, Premier Ed Stelmach abolished the tax, which had previously brought in $900 million
Canadian_Taxpayers_Federation
Former advocacy group for taxation reform
And it also makes a regressive tax even more so, because only those with credit cards and Internet access can do business online." Tax compliance software
Streamlined_Sales_Tax_Project
to be able to use this deduction at all. Regressive taxes include payroll taxes, sales taxes, and fuel taxes. A 2022 study in the American Economic Journal
Wealth inequality in the United States
Wealth_inequality_in_the_United_States
Form of real estate tax
"Mello-Roos" districts. The California parcel tax, in its typical form as a flat tax, is regressive. Most parcel taxes are a fixed amount per parcel, but some
Parcel_tax
American radio personality (1959–2021)
(October 21, 2015). "Congratulations Tennessee: You've Got the Most Regressive Tax System in America". The Atlantic. Archived from the original on August
Phil_Valentine
Political philosophy
posited in The Spirit of Law that progressive tax is most suited to liberty, whereas a regressive tax is most suited to slavery. In contemporary society
Redistribution of income and wealth
Redistribution_of_income_and_wealth
Refusal to pay a tax in opposition to government policy or taxation itself
Tax resistance (also known as a tax strike or tax revolt) is the refusal to pay tax because of opposition to the government that is imposing the tax, or
Tax_resistance
Goods tax levied at the moment of manufacture rather than sale
to excise taxes like cars, other motor vehicles and luxury goods. Excise taxes in general have been heavily criticized for being regressive (disproportionate
Excise
Higher tax rate on companies
windfall tax is a higher tax rate on profits that ensue from a sudden windfall gain to a particular company or industry. There have been windfall taxes in various
Windfall_tax
American think tank
The Tax Foundation is an international research think tank based in Washington, D.C. that collects data and publishes research studies on U.S. tax policies
Tax_Foundation
Australia covers income tax, GST and other taxes levied by both the states and the Federal government of Australia. Income taxes are the most significant
Taxation_in_Australia
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