One such benefit is that it increases government revenue and another benefit is that it encourages spending since for example, if the lower class buys more tobacco products, then “they will pay higher percentages of their incomes on tobacco taxes” (Nichols). However, the regressive tax system does have some major flaws that change how people view the regressive tax system. One flaw is that it heavily taxes the lower class while it barely affects the upper class, which is considered unfair. Another flaw is that being “ regressive in taxation may be either situational or structural” (Nichols). Situational regressiveness is due to the “ taxpayers ' circumstances, activities, or behavior” (Nichols), yet it is not an intentional feature of the regressive tax system. Structural regressiveness comes from “a decision by policymakers to deliberately apply a rate of tax on lower incomes that exceeds the rate imposed on higher income” …show more content…
Unlike the regressive and progressive tax systems, this tax system makes everyone equal in the regards that everyone pays the same amount of taxes. Therefore, this tax system is defined as tax equilibrium and it is characterized by “the unique proposal made by all above average income citizens and the unique proposal made by all below average income citizens” (x). In this this tax system, people are considered “below average income citizens propose a strictly higher tax rate than above average income citizens” (x). In my opinion, I do view this tax system as the tax system that promotes the most amounts of equality among the citizens who do pay taxes to our