Q. A tax is said to be regressive when its burden is reduced__
Answer: more heavily on the poor than on the rich
Notes: In terms of personal income and wealth, a regressive tax places a greater burden on the poor than on the rich. There is an inverse relationship between the tax rate as measured by wealth, consumption or income, and the taxpayer's ability to pay. These taxes reduce the tax burden of the rich, as they tend to overburden the burden.
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