What type of tax is regressive tax?

A regressive tax is a tax system where the tax rate decreases as the income level increases, meaning that lower-income individuals pay a higher percentage of their income compared to wealthier individuals. Common examples include sales taxes and excise taxes, where everyone pays the same rate regardless of income. This can disproportionately affect lower-income households, as they tend to spend a larger portion of their income on taxable goods and services. Consequently, regressive taxes can exacerbate income inequality.