How are tariffs regressive?
Income taxes are obviously progressive. If you earn $100,000 you are going to be paying a higher percentage of your earnings compared to someone making $10,000 or $50,000. It's not intuitive that someone who makes $100,000 is going to be paying less in tariffs than someone making $50,000 though. How does that work?
They’re regressive in the sense that people with lower income spend more of it on consumption than people with higher income or wealth, who can save or invest at a higher rate.
