A form of tax in which the poor pay a higher rate than the rich is known as

Assessment: WAEC SSCE - Economics - 1999 (Objective) Subject: Economics

Question 1 Report

A form of tax in which the poor pay a higher rate than the rich is known as
Answer Details
A regressive tax is a tax system where the tax rate decreases as the taxable amount increases. In other words, the poorer you are, the higher percentage of your income you pay as tax. This type of tax is considered regressive because it places a heavier burden on low-income earners compared to high-income earners. The term "regressive" refers to the fact that the tax rate decreases or regresses as income increases. Therefore, the correct answer is a regressive tax.

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