The term “regressive tax” refers to a tax that takes a larger percentage of the income of low-income individuals than of individuals with high-income.
“A regressive tax is a tax levied at rates which increase less rapidly than the increase of the taxed base, thus bearing more heavily on poorer taxpayers. Tax for which the rate decreases as the taxed base, such as income, increases. Empirical studies have shown that imposing a sales tax on food purchases is regressive.” Hyatt Corp. v. Department of State Revenue, 695 N.E.2d 1051, 1054 n.5 (1998) (quotations and citations omitted).