If tax takes a large proportion of the income of people with lower income, the tax is

Assessment: WAEC SSCE - Economics - 2007 (Objective) Subject: Economics

Question 1 Report

If tax takes a large proportion of the income of people with lower income, the tax is
Answer Details
If tax takes a large proportion of the income of people with lower income, the tax is considered regressive. This means that the burden of tax falls heavier on lower income earners than higher income earners. In other words, the tax rate decreases as income increases. This type of tax system is often criticized for being unfair as it puts a heavier burden on those who can least afford it.
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