At least, as far as disposable income is concerned. This is due to the law of diminishing returns. The best example I could give is the tax on short term assets. These are taxed at 35%. Now, let us say a poor student buys and sells $2,000 worth of stocks in one year and makes a $400 return. Even though this return may go towards paying for their food, they will still pay the same tax percentage as an individual that has made $1,000,000 on the stock market in one year. Granted, income in general is slightly progressive, but even then, it is counterbalanced enormously by the fact that the rich own duplexes while the poor pay rent.