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Economics

How Tax Policy Shapes Economic Inequality and Social Mobility

Quick fact

In many countries, a regressive tax like the sales tax hits the poor disproportionately: the poorest 20% may pay over 20% of their income in such taxes, while the richest 1% pay under 5%.

Why this is interesting

You've probably heard that the rich pay a lower tax rate than the middle class. But how does that single fact change the course of someone's life?