Regressive tax

A tax that places a smaller burden on the incomes of the rich than it does the poor. For example a sales tax that adds $1000 to the price of a product (say a 10% tax on a $10,000 car) places a larger burden on someone earning $50,000 (2% of his income) than someone earning $100,000 (1% of his income). A sales tax is therefore a regressive tax.

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