Final answer:
A regressive tax is a greater burden on the poor and middle-income earners than on the wealthy.
Step-by-step explanation:
A regressive tax is a greater burden on the poor and middle-income earners than on the wealthy. In a regressive tax system, the tax rate decreases as income increases, which means that people with lower incomes pay a higher percentage of their income in taxes compared to those with higher incomes. One example of a regressive tax is a sales tax, where people with lower incomes spend a higher proportion of their income on taxable goods than those with higher incomes. Another example is the FICA tax, which is a flat tax that affects all income earners regardless of their income level.
On the other hand, a progressive tax system, such as income taxes, imposes higher tax rates on individuals with higher incomes. This means that the wealthy pay a higher percentage of their income in taxes compared to the poor and middle-income earners. Progressive taxes are designed to redistribute wealth and create a more equitable tax burden.
Overall, the regressive tax system is a greater burden on the poor and middle-income earners because it takes a larger proportion of their income compared to the wealthy.