In this type of income tax system people who earn less pay a larger part of their income in taxes then people who earn more.?

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2026-08-19 04:55

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This type of income tax system is known as a regressive tax system. In a regressive system, lower-income individuals pay a higher percentage of their earnings in taxes compared to higher-income individuals, which can exacerbate income inequality. Sales taxes and flat taxes are common examples where those with less income are disproportionately affected. Such systems can burden low-income earners more heavily as their essential expenses take up a larger share of their total income.

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