Final answer:
A regressive tax imposes a higher burden on lower-income individuals. The tax rate decreases as the amount subject to taxation increases, affecting poorer families more significantly.
Explanation:
Regressive tax is a tax where the average tax rate decreases as the amount subject to taxation increases. This means that poorer individuals bear a higher tax burden compared to wealthier individuals. For example, taxes on cigarettes are regressive as they take a higher percentage of income from those with lower incomes.
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