All > Business > Finance > Personal Finance
A regressive or flat income tax system taxes everyone at the same rate, as sales tax does.
Advocates say it's simpler and does away with the kinds of tax breaks that tend to favor the wealthy. Opponents say that middle-income taxpayers carry too large a proportion of the total tax bill.
- Browse Related Terms: Effective tax rate, flat tax, Marginal tax rate, Private letter ruling, Progressive tax, Regressive tax, Tax bracket
All > Business > Finance > Personal Finance > Income Tax
A tax that takes a larger percentage of income from low-income groups than from high-income groups.
- Browse Related Terms: Commission, excise tax, Progressive tax, proportional tax, Regressive tax, sales tax, transaction taxes