What characterizes a regressive tax system?

A regressive tax system is characterized by the fact that higher income earners pay a smaller proportion of their income as tax compared to lower income earners. In such a system, taxes are structured in such a way that they take a larger percentage of income from those with lower earnings relative to those with higher earnings. For example, a flat sales tax applies equally to all consumers regardless of income, meaning that it takes a larger share of the income from lower earners.

This structure contrasts with progressive tax systems, where tax rates increase with income, meaning that higher income earners contribute a greater proportion of their income in taxes. The concept of a flat tax rate or fixed fees means that all taxpayers may pay the same amount or have their tax obligations not vary with income, but these do not characterize a regressive system. Additionally, a regressive tax system does involve tax collection, so the scenarios of uniform payment or non-collection fall outside its definition.