Regressive Tax Policy

A Regressive Tax Policy is a tax policy that imposes proportionally higher tax burdens on lower-income groups relative to higher-income groups (reducing progressive tax system effects and increasing economic inequality).

• AKA: Regressive Taxation, Regressive Tax System, Regressive Tax Structure.
• Context:
  • It can typically impose Regressive Tax Rates that decline as taxpayer income increases through fixed rates on consumption-based taxation.
  • It can typically burden Regressive Tax Low-Income Households through essential goods taxation and consumption taxes with limited tax exemptions.
  • It can typically reduce Regressive Tax Progressivity through flat tax rates and proportional tax structures that ignore income inequality.
  • It can typically increase Regressive Tax Inequality through sales taxes, excise taxes, and value-added taxes without income adjustments.
  • It can typically limit Regressive Tax Social Mobility through regressive tax burdens on basic necessitys and essential services.
  • ...
  • It can often interact with Regressive Tax Inflation through fixed tax amounts that become regressive tax burdens during economic inflation.
  • It can often compound Regressive Tax Wealth Concentration through capital gains preferences and investment income advantages.
  • It can often resist Regressive Tax Reform due to political opposition and regressive tax revenue dependency.
  • It can often mask Regressive Tax Impacts through tax policy complexity and regressive tax incidence economic analysis.
  • ...
  • It can range from being a Mildly Regressive Tax Policy to being a Highly Regressive Tax Policy, depending on its regressive tax burden distribution.
  • It can range from being a Consumption-Based Regressive Tax Policy to being a Income-Based Regressive Tax Policy, depending on its regressive tax base.
  • It can range from being a Explicit Regressive Tax Policy to being a De Facto Regressive Tax Policy, depending on its regressive tax design intention.
  • ...
• Examples:
  • Consumption Tax Regressive Tax Policies, such as:
    • Sales Tax Regressive Tax Policy imposing uniform sales tax rates on essential goods and luxury goods without income consideration.
    • Value-Added Tax Regressive Tax Policy applying flat VAT rates across income brackets without regressive tax relief mechanisms.
    • Excise Tax Regressive Tax Policy targeting tobacco, alcohol, and fuel consumption with fixed tax amounts regardless of purchaser income.
  • Property Tax Regressive Tax Policies, such as:
    • Flat Property Tax Regressive Tax Policy applying uniform property tax rates without income-based assessment or regressive tax exemptions.
    • Head Tax Regressive Tax Policy imposing fixed per-capita taxes regardless of individual income or wealth level.
  • Social Insurance Regressive Tax Policies, such as:
    • Payroll Tax Cap Regressive Tax Policy limiting social security taxes to income thresholds that exclude high-income earners.
    • Flat Premium Regressive Tax Policy requiring fixed insurance premiums regardless of income capacity or ability to pay.
  • ...
• Counter-Examples:
  • Progressive Tax Policies, which impose higher tax rates on higher-income brackets through graduated tax schedules.
  • Proportional Tax Policies, which maintain constant tax rates across income levels without regressive burdens on lower-income groups.
  • Tax Credit Systems, which provide income-based tax relief to offset regressive tax effects through targeted assistance.
• See: Progressive Tax Policy, Tax Policy, Economic Inequality, Gini Economic Inequality Index, Income Distribution, Tax Incidence, Fiscal Policy.

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