Regressive tax

A regressive tax is a kind of tax that takes a bigger chunk of money from people who make less money. This means that in a regressive tax system, people with lower incomes pay a higher percentage of their income in taxes, while people with higher incomes pay a lower percentage of their income in taxes. For example, a small business owner making $50,000 a year might have to pay 20% of their income in taxes, while someone making $500,000 a year might only have to pay 10% of their income in taxes.