!-- Google Tag Manager (noscript) -->

Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

regressive tax

Read a random definition: I-94 Card

A quick definition of regressive tax:

A regressive tax is a type of tax that takes a larger percentage of income from people with lower incomes than from people with higher incomes. This means that people who earn less money have to pay a higher percentage of their income in taxes than people who earn more money. It is called "regressive" because it has a greater impact on those who can least afford it.

A more thorough explanation:

A regressive tax is a type of tax that takes a larger percentage of income from low-income earners than from high-income earners. This means that people who earn less money pay a higher percentage of their income in taxes than people who earn more money.

  • Sales tax: A sales tax is a regressive tax because everyone pays the same percentage of tax on the goods they purchase, regardless of their income. This means that low-income earners pay a higher percentage of their income in sales tax than high-income earners.
  • Property tax: Property tax is also considered a regressive tax because it is based on the value of a person's property, not their income. This means that people who own expensive homes pay more in property tax, but this tax takes up a smaller percentage of their income than it does for people who own less expensive homes.

These examples illustrate how a regressive tax can be unfair to low-income earners because they end up paying a larger percentage of their income in taxes than high-income earners. This can make it harder for them to make ends meet and can contribute to income inequality.

regress | regula

Warning

Info

General

General chat about the legal profession.
main_chatroom
๐Ÿ‘ Chat vibe: 0 ๐Ÿ‘Ž
Help us make LSD better!
Tell us what's important to you
LSD+ is ad-free, with DMs, discounts, case briefs & more.