A Tax is said to be Regressive When its Burden Falls:

  1. More heavily on the poor than on the rich.
  2. Less heavily on the poor than on the rich.
  3. Equally on the poor as on the rich.
  4. None of the above
Monis Rasool Professor Asked on 27th June 2015 in Finance.
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    More heavily on the poor than on the rich.

    A tax is said to be Regressive when it burden falls more heavily on the poor than on the rich. A Regressive tax, When a ratepayer pays a big percentage of his/her income in taxes that does the higher-income ratepayer. The Progressive tax is opposite of the regressive tax. Progressive tax a tax which takes a  big percentage from the income of richer or high-income earners than it does from low-income individuals.

    Monis Rasool Professor Answered on 28th July 2015.
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