Regressive Tax:
A regressive tax is a tax system where the tax rate decreases as the taxable amount increases. In other words, the tax burden falls more heavily on lower-income individuals or households.

Explanation:
When a tax system is regressive, it means that individuals with lower incomes pay a larger proportion of their income in taxes compared to those with higher incomes. This is because the tax rate decreases as the income increases.

Impact on Lower Section of People:
A regressive tax system tends to have a disproportionate impact on the lower section of people, who typically have limited financial resources. Here's why:

1. Income Disparity: Lower-income individuals often spend a larger portion of their income on necessities such as food, housing, and healthcare. As a result, when a regressive tax is applied, a higher percentage of their income is allocated to taxes, leaving them with less disposable income for essential expenses.

2. Reduced Ability to Save: The burden of regressive taxes can make it challenging for lower-income individuals to save money. With a significant portion of their income going towards taxes, they may struggle to build an emergency fund, invest, or plan for the future.

3. Impact on Standard of Living: Regressive taxes can contribute to a lower standard of living for lower-income individuals. As they have less disposable income available after paying taxes, they may have to cut back on essential goods and services, leading to a reduced quality of life.

4. Income Inequality: Regressive tax systems can exacerbate income inequality by widening the gap between the rich and the poor. Since higher-income individuals pay a lower proportion of their income in taxes, they have more disposable income to save, invest, or spend on luxury goods and services.

5. Limited Access to Opportunities: Higher tax burdens on lower-income individuals can limit their access to educational, employment, and entrepreneurial opportunities. This can further perpetuate the cycle of poverty and hinder social mobility.

In conclusion, a regressive tax system places a heavy tax burden on the lower section of people, which can have adverse effects on their financial well-being, standard of living, and opportunities for upward mobility.