- From progressive income taxes to
regressive consumption taxes, MSP premiums, and user fees for public programs and services.
Not exact matches
Cutting
consumption taxes is
regressive, many warned, because it rewards the rich with proportionately greater discounts (two per cent off the price of a BMW, they reasoned, is worth a lot more than two per cent off a Chevy Cavalier).
VATs are
regressive, as they
tax consumption rather than income and the poor consume a larger portion of their income.
Another criticism, typically from the other side politically, is that it is a
regressive tax - usually a flat percentage of
consumption.
As the authors suggest, their finding runs counter to conventional economic thinking that
consumption taxes (including carbon
taxes) are necessarily
regressive when revenue treatment is ignored.
It's true that
consumption taxes, a category including carbon
taxes, are «
regressive» — they take a larger share of income from low - income households — but that's true only when the use of the
tax revenues is ignored.