Principles of Macroeconomics / Unit 14 MAC 1308 short lesson, about 20 seconds
Three Tax Structures
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The idea
A tax is progressive if it takes a larger share of income as income rises, proportional if it takes the same share at every income, and regressive if it takes a smaller share as income rises.
In practice
The test is always the share of income paid, never the amount.
Where people slip
A regressive tax can still collect more dollars from a richer payer.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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