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A consumption tax is characterized as regressive because it taxes individuals based on their spending rather than their income. This means that everyone pays the same rate regardless of income level, leading to a higher burden on lower-income individuals who tend to spend a larger portion of their income on consumption. The phrase "if you don't use, you don't pay" captures the essence of consumption taxes, as they are applied only when purchases are made. Individuals can choose to limit their spending and thereby lower their tax liabilities, making it a unique form of taxation compared to income or property taxes, which are based on earnings or asset value, respectively.

In contrast, income tax is progressive, levied on earnings, and typically involves higher rates for higher income brackets. Property tax is based on the value of owned real estate, irrespective of how much the owner uses it. Excise tax is a specific type of consumption tax applied to particular goods, such as tobacco or gasoline, but its classification does not encapsulate the general nature of consumption taxes as a whole.