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with a progressive tax, when you make more money, you pay a larger percent of that money.
ex: income 10k you pay 10% in taxes.
income goes up to 20k you pay 15% in taxes.
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regressive tax- a person with a lower income pays more in tax, relatively speaking, than a person with a higher income.
you pay a larger percentage of your income in taxes than a person with an income higher than yours.
ex:
- $200 a year in tax on food
- income is 20k friends income is 40k
- $200 is one percent of 20k, 200 is one half percent of 40k
- you are paying 1 percent of your income in food tax
- your friend is paying one half percent of income in food tax
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