What kind of taxes are proportional, progressive, and regressive?
Property taxes: Generally proportional, at least within the same tax district. However they have both progressive and regressive features. As long as your income rises along with the tax bill they are slightly progressive. However once you retire on a fixed income they rapidly become regressive. Sales taxes: While the rate is proportional the impact is often regressive as the poor generally pay a much higher portion of their total income than wealthier taxpayers do. Income tax: Most are progressive. The Federal income tax is progressive. Most states have a progressive rate structure as well, however a few have proportional rates. Social Security Tax: Regressive. Taxpayers with incomes below the earnings cap pay a proportional rate, however the effective rate drops rapidly once the taxpayer’s income exceeds the earnings cap. Excise tax: Proportional.
