Regressive Tax

A tax where a person or household with less income pays a higher proportion of their income towards that tax.
Regressive taxes can worsen inequality and reduce wellbeing, because they take more from people who already have less.
Example
In Aotearoa, low income households spend most of their income on items that are taxed under GST. They pay more GST for each dollar of their income than higher income households.
Visual idea: Two buckets: one small bucket labelled “low income” losing more water proportionally than a huge bucket labelled “high income.”