Economics · Taxation
Which of the following is a characteristic or example of a regressive tax structure?
- 1A tax system where tax rates decrease proportionally as the taxable amount or income decreases
- 2A type of tax system that imposes the same percentage rate of tax on all taxpayers regardless of income
- 3A tax system that imposes a larger percentage of tax on higher-income groups as compared to lower-income groups
- 4A tax system that imposes a higher relative burden on lower-income groups, such as uniform taxes on essential goods✓
Correct answer
A tax system that imposes a higher relative burden on lower-income groups, such as uniform taxes on essential goods
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