Here's how it works:
Let's say the tax is $800 dollars per year. Under this Regressive Tax
system, that's $800 for everyone, regardless of their income.
If you have a part-time job and earn $2,600 per year, an $800 tax bill means
you're paying about 30% of your income in taxes.
If you earn $8,000 a year working at the local movie theater, you get to
watch all the latest flicks, but you're not going to be buying a yacht or
retiring anytime soon. $800 in taxes means you're paying 10% of your
income in taxes.
If your cousin with the business degree earns $80,000 a year at some big
company in town, $800 translates to just 1% of her income.
Regressive Taxes take a larger percentage of income from low-income groups
than from high-income groups.
