MANAGEMENT

Detailed explanation-1: -A regressive tax is when the tax rate decreases as the amount subject to taxation increases; the tax rate progresses from high to low. The lowest amount is subject to higher taxation and this leads to individuals with low income bearing the highest-burden of regressive taxes.

Detailed explanation-2: -regressive tax, tax that imposes a smaller burden (relative to resources) on those who are wealthier. Its opposite, a progressive tax, imposes a larger burden on the wealthy. A change to any tax code that renders it less progressive is also referred to as regressive.

Detailed explanation-3: -The regressive tax rate line has a declining negative slope. The steeper the negative slope of the tax line, the more regressive the taxation. The degressive tax rate line has a rising slope initially, but it becomes constant after a point.

Detailed explanation-4: -Under a progressive income tax the average income tax rate rises with income.

Detailed explanation-5: -Regressive Taxes Higher-income employees effectively pay a lower proportion of their overall pay into the Social Security system than lower-income employees because it’s a flat rate for everyone and because of this cap.