degressieve

Degressieve is a Dutch adjective meaning degressive or decreasing in rate. It describes a relationship in which the magnitude of a variable diminishes as another variable increases. The term is used in economics, accounting and policy discussions to characterize methods or structures where benefits, costs or rates are front-loaded and taper off over time or with scale.

In taxation, degressieve or regressive tax structures imply that the marginal tax rate falls as the tax base grows. This can lead to a higher effective tax burden for lower-income groups relative to higher-income groups, all else being equal. Debates about degressieve tax designs typically focus on equity, fairness and the impact on income distribution, with critics arguing they reduce progressivity and place a larger burden on those with less ability to pay.

In accounting and depreciation, degressieve afschrijving denotes a method where depreciation deductions are larger in the early years of an asset’s life and decline in later years. This contrasts with straight-line depreciation, which distributes the same amount each year, and with some accelerated methods that front-load deductions more aggressively. Degressieve depreciation is used to reflect rapid initial loss of value or to achieve certain tax planning objectives, though its availability and rules vary by jurisdiction and time.

Degressieve concepts are often contrasted with progressive taxation and with constant-rate methods, such as straight-line depreciation, to illustrate different approaches to allocating costs, benefits or burdens across time or income levels.