A tax with a rate that decreases as the taxpayer’s income increases.
The result of a regressive tax is that the lower-income taxpayer pays a larger percentage of his or her income in taxes than does the higher-income taxpayer. The opposite of the regressive tax is the progressive tax. With progressive taxes, such as the federal Income Tax, the effective tax rates increase as the taxpayer’s income increases. The proportionate tax rate, also referred to as a flat tax rate, remains constant as income rises. Under a proportionate tax system, higher-income individuals pay a greater amount of taxes than lower-income individuals pay, but the ratio is identical.
Consumption taxes, which are taxes on consumer goods and services, are usually regressive because individuals with lower incomes spend a larger portion of their income on these goods and services than higher-income individuals do.
With The Regressives in full control of the Eureka City Council, is it any wonder that they want to make permanent a Regressive Tax like Measure O?
Using this special tax to actually fund public safety as a emergency measure in 2010, during the peak of the great recession seemed like a viable argument at the time. Four years later the conditions are not as dire as they were, yet this Council and it’s “oracle newspaper” wants you to believe that without renewing this special tax we all going to hell in hand basket. Adding to that is the fact that there are no additional transparency measures being added to this extension.
A Pinnacle example of a Regressive outcome is the object of “local elitists pride” the Eureka Zoo. The zoo is funded disproportionately by Eureka poor. The majority of its visitors doesn’t live here and are assessed only incidentally. Many of Eureka’s poor don’t even have the ability to visit the Zoo.
The fair way to fund the Zoo would be a specific assessment district, based on its actual service area. This, of course, would need a vote and that would mean that there would actually have to be the wide spread support that’s always claimed for the zoo!