degressive tax
Học thuậtThân thiện
Definition
- Noun:
- A tax in which the rate decreases as the amount subject to taxation increases: A "degressive tax" is a type of tax structure where the tax rate applied to income or wealth declines as the taxable amount rises. It is the opposite of a progressive tax.
Usage
- The term "degressive tax" is used in economics, public finance, and policy discussions to describe a specific, less common tax structure. It is typically used in formal or academic contexts when comparing different tax systems (progressive, proportional, and degressive).
Examples
- Noun:
- Some argue that a flat tax can become a degressive tax for very high earners if it includes a large standard deduction.
- The proposed levy was criticized as a degressive tax because it placed a proportionally higher burden on low-income households.
Advanced Usage
- "Degressivity": The quality or state of being degressive, often used to describe the characteristic of a tax system.
- The report highlighted the degressivity of the national sales tax structure.
Variants and Related Words
- Degressive (adj): Decreasing in rate as the base amount increases.
- The degressive nature of the fee schedule was controversial.
- Progressive tax (n): A tax where the rate increases as the taxable amount increases. (Antonym concept)
- Regressive tax (n): A tax that takes a larger percentage of income from low-income earners than from high-income earners. (Often used in a similar critical context, though technically distinct; a degressive tax is a specific type of regressive structure.)
Synonyms
- Regressive levy: A tax that imposes a heavier relative burden on those with lower ability to pay. (Note: "regressive" is a broader, more commonly used critical term in public discourse.)
- Inversely progressive tax: A less common synonym emphasizing the opposite structure of a progressive tax.
Related Phrases
- Tax incidence: The analysis of who ultimately bears the economic burden of a tax, often discussed in relation to degressive structures.
- The tax incidence of a degressive tax typically falls more heavily on lower-income groups.
Noun
- any tax in which the rate decreases as the amount subject to taxation increases