How is a regressive tax structured?

A regressive tax is structured in such a way that it imposes a heavier burden on individuals with lower incomes compared to those with higher incomes. This means that as income decreases, the percentage of income paid in taxes increases. For example, a sales tax or specific consumption taxes can be seen as regressive, because lower-income individuals spend a larger portion of their income on taxed goods and services. Consequently, they end up paying a higher percentage of their overall income in such taxes.

The other options do not accurately describe the nature of a regressive tax. It does not take a larger percentage from high-income earners, as that would be characteristic of a progressive tax system. A tax that takes the same percentage from all income levels would be considered a flat tax rather than regressive. Lastly, a tax that is only applicable to certain goods and services doesn't inherently imply a regressive structure, as it could be equally applied across various income levels without the increased burden on lower earners that characterizes a regressive tax.