What is meant by a regressive tax?

What is meant by a regressive tax?

A regressive tax is a tax whose rate in terms of percentage reduces as the level of income increase. Here the low income earners pay a higher proportion of their income in form of taxes then the rich.

Or

regressive tax is one where the average tax burden decreases with income.

Advantages of a regressive tax

Regressive tax helps to reduce the demand for goods like tobacco and alcohol products.

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