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So, in the tax system, the terms describe percentages of income/assets taken from the taxes. Progressive taxes charge a higher percentage from richer people tha
by HWR_14 4y ago
So, in the tax system, the terms describe percentages of income/assets taken from the taxes. Progressive taxes charge a higher percentage from richer people than poorer people. Flat taxes aim to take the same percentage from everyone. Regressive taxes charge poorer people a higher percentage of their income.
People say sales taxes are regressive because the cost of things that people buy usually increases slower than the income to support it. Very poor people spend (over) 100% of their income. Richer people do not - they save for retirement and other things. And if they want to buy toys, they might be very expensive toys (eg a yacht). It is worth going to a place without the sales tax to make a large purchase.