Definition, Meaning & Synonyms

regressivity

Noun

/rɪˈɡresɪvɪti/

Definition

Regressivity refers to a situation where the tax rate decreases as the amount of income increases, resulting in lower-income individuals paying a higher percentage of their income in taxes compared to higher-income individuals.

Examples

The regressivity of the sales tax impacts low-income families more severely than wealthier ones.
Policy analysts often debate the regressivity of certain welfare policies.

Meaning

The concept of regressivity is commonly used in economics, particularly in the context of tax systems that disproportionately burden the poorer segments of the population.