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> A flat licensing fee would be regressive. No. It would be flat. A regressive tax would charge the small companies more than the big companies.
by monochromatic 15y ago
> A flat licensing fee would be regressive.
No. It would be flat. A regressive tax would charge the small companies more than the big companies.
- microtherion 15y agoA regressive tax charges small companies a higher PERCENTAGE of income than large companies, which is exactly what a flat fee would do.
- esrauch 15y agoFlat tax generally means a flat percentage not a flat fee. Regressive tax is where the rate (percentage) goes down as you scale up. A tax that is a fixed total amount (not a fixed total percentage) is regressive because the same amount is a lower percentage of a higher income. You can still charge the rich total more than the poor and have it be regressive; eg a regressive tax where you charge 10k income at 10% and 1k income at 20% you still charging the rich a larger amount.
- deleted 15y ago[deleted]
- sedev 15y agoOr to give the US example, sales tax (and 'vice' taxes like cigarettes and liquor) - because of the different spending habits of different groups, they're effectively regressive taxes.