What does it mean if your tax burden decreases as your taxable income decreases?

A decrease in your tax burden as your taxable income decreases indicates that the tax system is structured in a way where individuals with lower incomes pay a smaller percentage of their income in taxes compared to those with higher incomes. This reflects characteristics of a progressive tax system, where tax rates increase as income increases. Therefore, higher earners pay a higher rate on their additional income, while lower earners benefit from lower rates, effectively reducing their burden when their income goes down.

In this context, a progressive tax system aims to alleviate the financial pressure on those who have less. It ensures a fairer distribution of the tax burden, with the intent of supporting economic equity by allowing those with higher incomes to contribute a larger share relative to their ability to pay.

This contrasts with a regressive tax system, wherein lower-income individuals pay a higher proportion of their income in taxes compared to those with higher incomes, resulting in an increased tax burden as income decreases. A proportional tax system applies the same tax rate regardless of income level, meaning the tax burden remains consistent as income changes. A fixed tax system would imply that taxes do not vary with income, providing no flexibility relative to a person's earnings.

Hence, because a decreasing tax burden correlates with decreasing income points to