What are three countries who currently use the regressive income tax policy?

Question

Regressive income tax means the less you make the more you pay. What countries run their governments this way?

Answer 1

If you change the focus from income taxation to overall taxation, most countries do. There are caps on payroll taxes; once you reach them, you do not pay additional taxes regardless of how high your income goes. There are consumption taxes (such as sales taxes in the U.S. and Japan, GST in Canada, or VAT in Europe), which essentially tax consumption, but not saving (needless to say, it is the wealthier households who can afford to save more). Finally, many countries exempt income from foreign investments from domestic taxation...

Answer 2

Countries With Regressive Tax

Answer 3

Well, a flat tax would hit the middle and lower classes the hardest, so I guess we'd be pretty pissed! Actually, a graduated income tax is the fairest tax system around. Property taxes hit the elderly and others on fixed incomes. Sales taxes cruicify the poor. A well-designed graduated income tax places little or no burden on the poor and a minimum burden on the elderly. As you move up the income scale, where you can afford to pay the taxes, your tax bite increases. Sure, if you're uber-rich you get a big tax bill but the difference is that you can actually AFFORD it. For example, let's say we trashed the current income tax with a flat 20% across the board levy on all incomes. (Actually, that's not enough to replace the revenue from the current system, but let's use it just for an example.) Consider the plight of a single mother supporting 3 kids on $15,000 a year. Currently, her tax bite is actually about -$6,000 a year when the child tax credit and earned income credit are applied. After SS taxes are factored in, she has about $18,800. a year to support herself and kids. She survives. Barely. Now, with a 20% across the board levy, her tax bite is $3000. After SS taxes, she now has about 10,800. She can barely pay the rent now, let alone food, utilities and clothing for the kids. Get the picture?

Answer 4

small, ***-backward countries are run like that - most Westernized nations use the progressive system