Question

Under which plan would you pay the most in taxes? Under which plan would you pay the least in taxes?

Answer 1

in a flat tax system, you just pay a certain percentage of your income, no matter it is. One tax bracket for everyone, if you like.

In a regressive tax system, the tax rates are highest on the lowest incomes, and gradually decrease as the income goes up. You might think of it as a quantity discount.

In a progressive tax system, the tax rates are lowest on the lowest incomes, and gradually increase as income goes up. Theory is that the more you make the more you can afford to pay.