Regressiivisyyttä

Regressiivisyys, or regressivity, refers to a tax or fee system where the rate decreases as the taxed amount increases. In simpler terms, those who earn or possess less pay a proportionally larger percentage of their income or wealth in taxes compared to those who earn or possess more. This is the opposite of a progressive system, where tax rates increase with income or wealth.

A common example of a regressiivinen tax is a flat sales tax or value-added tax (VAT). While everyone pays the same percentage on the goods and services they purchase, the burden falls more heavily on lower-income individuals because they spend a larger proportion of their income on necessities. For instance, if a person earning $20,000 a year spends $10,000 on taxable goods, and another earning $100,000 spends $20,000, both pay the same tax rate on their spending, but the first individual's tax payment represents a larger slice of their overall income.

Regressiivisyys is often criticized for exacerbating income inequality. Proponents might argue that such systems are simpler to administer or can stimulate economic activity by leaving more disposable income for those with less to spend. However, the primary characteristic remains the disproportionate impact on lower economic strata. Analyzing the regressiivisyys of any economic policy is crucial for understanding its distributional effects and its potential impact on social equity.