Degressive Tax (Noun)
Meaning
Any tax in which the rate decreases as the amount subject to taxation increases.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The government implemented a degressive tax on income, where the tax rate decreased as the income level increased, to encourage entrepreneurship and job creation.
- The new tax reform introduced a degressive tax on wealth, where the tax rate decreased as the wealth accumulated, to promote savings and investments.
- The country's tax system features a degressive tax on property, where the tax rate decreases as the property value increases, to encourage real estate development.
- The degressive tax on inheritance allowed the family to keep more of their inherited wealth, as the tax rate decreased as the amount inherited increased.
- The economist argued that a degressive tax on carbon emissions would be more effective in reducing pollution, as the tax rate would decrease as the emissions decreased.