The Federal Income Tax system is characterized as?

The Federal Income Tax system is best characterized as regressive when considering the structure of various taxes individuals pay in relation to their income levels. A regressive tax system implies that the tax rate decreases as the taxable amount increases. This means that lower-income individuals pay a larger percentage of their income in taxes compared to higher-income earners. While the federal income tax does include progressive elements (where higher earners pay a higher percentage), other components of the overall tax structure, such as payroll taxes or sales taxes, can disproportionately affect lower-income individuals, leading to a tax burden that feels heavier for them.

This characterization highlights important discussions about equity and fairness in taxation, as a regressive system can impact the distribution of wealth and resources within society. Understanding the nuances of tax systems helps clarify how different taxation approaches may benefit or burden particular groups economically.