Income tax in a country provides every individual with an initial tax-free allowance. Any income above this allowance is then taxed at higher rates as people’s incomes increase. Which alteration to this income tax would make it regressive?
- Adecreasing the lowest rate of tax
- Bdecreasing the tax-free income allowance
- Cincreasing the tax-free income allowance
- Dincreasing the top rate of tax