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Tee difference between a progressive and a regressive tax is that a progressive tax is a direct form of taxation where the rate of taxing increases as income increases, whereas a regressive tax is an indirect tax where the rate of taxing decrecreases as income increases.
This form of exemption is also progressive, since an across-the-board cut in a regressive tax will be most helpful to low-income taxpayersâbut it is far less effective at targeting relief to poor taxpayers than are flat exemptions.