Regressive tax is a tax regime where those with low incomes pay a larger share of their income in taxes compared to those earning higher incomes. Regressive taxes include taxes on basic necessities like food, as well as state sales taxes, user fees, and some property taxes. Under a regressive tax system, taxes are applied uniformly regardless of a taxpayer's financial status, which disproportionately affects those with lower incomes who must spend a larger portion of their earnings on taxes. While uniform tax rates can be considered fair, regressive taxes are viewed as unjust by some because they impact low-income individuals more severely than high earners.

1. What Is Regressive Tax?
By: Robin Taliaferro

2. What Is Regressive Tax?
California finance and tax specialist Robin Taliaferro has vast industry experience that spans
almost three decades. An MBA corporate finance graduate from Babson Institute, he is the founder
and CEO of Corporate Officer Tax Strategies, LLC. In the course of his career, Robin Taliaferro
has worked in senior positions for numerous Silicon Valley companies focusing on tax, risk, and
liquidity. He has also attended over 30 tax seminars across California, covering a wide spectrum of
tax topics such as regressive tax.

3. What Is Regressive Tax?
Regressive tax is a regime where those with low incomes pay a larger share of income in taxes
compared to those earning higher incomes. Tax on basic necessities such as food is considered
regressive, as people in the lower income bracket are forced to spend a bigger portion of their
incomes to acquire basic commodities, which translates to higher taxes. Unfortunately, regressive
tax severely affects individuals with lower incomes compared to high earners, since taxes are
applied uniformly, irrespective of the financial status of a taxpayer.

4. What Is Regressive Tax?
While it may be fair in some cases to tax everyone at the same rate, regressive tax is considered
by some to be unjust. Even though the U.S. has a progressive tax system where high income
earners pay a larger percentage of income taxes compared to their lower income counterparts,
there are certain levies, such as state sales taxes, user fees, and some property taxes, that are
considered to be regressive taxes.