A regressive tax
A) taxes individuals with higher incomes at a higher rate than individuals with lower incomes.
B) takes a similar percentage of income at all income levels.
C) takes a higher percentage of the income of those with lower incomes than for those with higher incomes.
D) taxes savings at a higher rate than consumption.

Question

Quizplus · Accepted Answer

A regressive tax takes a higher percentage of income from those with lower incomes compared to those with higher incomes, meaning the tax burden decreases as income increases.

A Regressive Tax