Although state and local taxes are highly progressive,federal taxation is predominantly regressive.

Federal taxation is predominantly regressive because it relies heavily on payroll taxes (such as Social Security and Medicare taxes), which are not progressive since they apply to all income levels up to a certain ceiling. Additionally, other federal taxes such as excise taxes and tariffs tend to be regressive since they disproportionately affect low-income households who spend a larger portion of their income on taxed goods and services.