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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 tax is a tax that takes a greater percentage of income from those who earn less, than from those with a higher income. In other words, low income people pay more, relative to their earnings, than wealthy people.