Question

Which of the following best illustrates a regressive tax(Income, sales property or excise)?

Answer 1

A regressive tax is a tax that takes a larger percentage of income from low-income earners than from high-income earners. The usual definition of regressiveness is the following: When the ratio of consumption tax to income increases with higher income levels, it is called a progressive tax. When this ratio is proportionate, it is called a proportionate tax and when this ratio decreases it is called a regressive tax.

Property taxes are fundamentally regressive because, if two individuals in the same tax jurisdiction live in properties with the same values, they pay the same amount of property tax, regardless of their incomes. However, they are not purely regressive in practice because they are based on the value of the property.

An excise tax is a flat tax imposed on each item sold. It is regressive because it takes a greater percentage of a poor person's income.

A sales tax on the purchase of everyday products or services, such as food and clothing, is assessed as a percentage of the item bought, and is the same for every individual or entity. Governments apply sales taxes uniformly to all consumers based on what they buy. Although the tax is the same rate in both cases, the person with the lower income pays a higher percentage of income, making the tax regressive

while income taxes are considered progressive taxes.

So, I would say sales and excise taxes are the most regressive taxes.