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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.
Regressive tax. A regressive or flat income tax system taxes everyone at the same rate, as sales tax does. Advocates say it's simpler and does away with the kinds of tax breaks that tend to favor the wealthy. Opponents say that middle-income taxpayers carry too large a proportion of the total tax bill. regressive or flat income tax system taxes everyone at the same rate, as sales tax does. Advocates say it's simpler and does away with the kinds of tax breaks that tend to favor the wealthy.