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Tee difference between a progressive and a regressive tax is that a progressive tax is a direct form of taxation where the rate of taxing increases as income increases, whereas a regressive tax is an indirect tax where the rate of taxing decrecreases as income increases.
Best Answer: Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. United States taxation includes local government, regional entities, and state and federal government. 3 Main Type of Taxes Proportional tax: Remains a fixed amount (percentage) no matter the amount being taxed. Progressive tax: Increases as the amount being taxed increases. Regressive tax: Decreases as the amount being taxed increases.