A sales tax can be described as

Question

A) a progressive tax.
B) a proportional tax.
C) a regressive tax.
D) an excise tax.

Answer 1

A sales tax is best described as:

C) a regressive tax.

This is because a sales tax takes a larger percentage of income from lower-income earners than from higher-income earners. Since everyone pays the same rate regardless of their income, lower-income individuals end up paying a higher proportion of their income compared to wealthier individuals.