Franchise tax is a state tax, usually regressive, imposed on a state-chartered corporation for the right to do business under its corporate name.
A regressive tax is a tax system where the tax rate decreases as the income of the taxpayer increases. This structure places more financial burden on lower-income earners relative to their income.
A sin tax is a specific type of tax imposed on goods that are considered harmful to individuals and society, such as alcohol, tobacco, and gambling. This tax aims to reduce consumption of these products, improve public health, and generate revenue for the government.
