Meaning & use
regressive tax
Last updated
Meaning
nouncountable
A tax that takes a larger percentage of income from low-income people than from high-income people.
Grammar: Countable; use 'a regressive tax' or 'regressive taxes'. Often followed by 'on' to name what is taxed.
Patterns
- a regressive tax on something
- regressive taxes on something
A sales tax on food is often called a regressive tax because poor families spend a larger share of their income on food.
Many economists argue that a flat fee for public services acts as a regressive tax on the poor.
The report compared progressive and regressive taxes and found that the poor paid a higher percentage of their earnings.
Word forms
| plural | regressive taxes |
|---|
Common combinations
- a regressive tax on
- A regressive tax on basic goods hurts low-income households most.
- highly regressive
- The new levy is highly regressive, hitting the poorest hardest.
- regressive tax system
- The country's regressive tax system relies heavily on consumption taxes.
Synonyms and how they differ
- flat tax
- A flat tax charges the same rate to everyone, which can still be regressive in effect, but the term itself does not describe the income effect.
Opposites
Word family
- regressive adjective
- Describing a tax or policy that places a heavier burden on lower earners.
- regressivity noun
- The quality of being regressive, often used in economic analysis.
Commonly confused: regressive tax or progressive tax?
regressive tax vs progressive tax
A progressive tax takes a larger share from high earners; a regressive tax does the opposite.
Practice
Which of the following is an example of a regressive tax?
Choose one answer.
A sales tax on groceries is regressive because it takes a larger percentage of income from low earners. Option A describes a progressive tax, and option B describes a flat tax, which may or may not be regressive in effect.
Make it your own
Write a sentence using “regressive tax”, then check it and compare it with the examples above.