degressive tax

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Explanation of "Degressive Tax"

Definition: A "degressive tax" is a type of tax where the percentage you pay decreases as the amount of money you earn or the value of what you own increases. In other words, the more you make, the less you pay in tax as a percentage.

Advanced Usage:

• Context: Degressive taxes are sometimes argued for because they can encourage investment and spending by higher earners, while critics may say they increase inequality.
• Example: "Countries with degressive tax systems often see increased economic activity among wealthier individuals, as they retain more of their earnings."

Word Variants:

• Degressively (adverb): This describes how something applies in a decreasing manner.
  • Example: "The tax was applied degressively, benefiting higher income individuals."

Different Meanings:

• The term "degressive" itself can also refer to anything that decreases in intensity, amount, or value. It is often used in various contexts like pricing strategies or discounts.

Synonyms:

• Declining tax: Another term that can be used to describe a tax that decreases as the amount increases.
• Regressive tax (opposite): A tax that takes a larger percentage from low-income earners than from high-income earners.

Idioms and Phrasal Verbs:

• While there aren't specific idioms or phrasal verbs directly related to "degressive tax," you might encounter phrases like:
  • "Tax break": A reduction in the amount of tax someone has to pay.

Summary:

A degressive tax is a system where people pay less tax as they earn more money, which can lead to discussions about fairness and economic impact.

Academic

Noun

1. any tax in which the rate decreases as the amount subject to taxation increases