regressive tax

  

Definition

Taxation that takes a larger percentage of a lower-income and a smaller percentage of a higher income. For example, a tax on the basic necessities (which form a larger percentage of the expenditure of the lower income population) is a regressive tax. See also progressive tax.

Use regressive tax in a sentence

  • Some times there is a regressive tax that will take more from the poorer people than the richer people but I am not sure why.

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  • I was not aware that the company I had been hired by had imposed a regressive tax and, therefore, the tax rate would decrease over time.

    2 people found this helpful    
  • Some countries use a regressive tax that favors the rich people and ends up costing the poor people more money.

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