
[This is part of the series: The Complete Guide To Economics 101.]
What is defined as a regressive tax?
A Regressive Tax is a tax where the overall tax rate decreases as the taxable amount increases.
The example that everyone uses for this is social security taxes.
The tax is paid on income below a certain point.
Therefore, the more you earn, the less portion of your income goes to the tax.
This is different from a proportional tax.