alleryStart learning →A regressive tax means people with higher incomes pay a share of their income that is:
ASmaller
BLarger
CIdentical
DUnlimited
Answer & Solution
Correct answer: A. Smaller
1. Regressive is the opposite of progressive.
2. The Social Security payroll tax is proportional up to the wage limit.
3. Above that level it becomes a regressive tax.
4. That means people with higher incomes pay a smaller share of their income in tax.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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