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Degressive Tax Explained



Degressive Tax Defined

Any tax where the rate of the tax decreases as the amount subject to taxation increase.

A Little More on Degressive Taxes

This kind of tax puts more burden on the poor and relieves the rich. The rate of tax is disproportionate to the ability of payment of taxpayers. It is a regressive tax system as, the more someone consumes or earns, the less pay they for it. The people with higher income and consumption pay less tax than the people with less income and consumption.

References for Degressive Taxation

https://www.thefreedictionary.com/degressive+tax
http://www.businessdictionary.com/definition/degressive-tax.html
https://en.wikipedia.org/wiki/Regressive_tax


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