© 2015 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Regressive Tax


The opposite of a progressive tax, this is tax that affects the poor more than the wealthy. An example of a regressive tax is a sales tax--everyone has to pay the same amount of sales tax, no matter what they buy, but 10% extra for groceries is a much greater burden for the poor than the wealthy.