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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Regressive Tax

Definition:

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.

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