Question
A sales tax can be described as
A) a progressive tax.
B) a proportional tax.
C) a regressive tax.
D) an excise tax.
A) a progressive tax.
B) a proportional tax.
C) a regressive tax.
D) an excise tax.
Answers
GPT-4o mini
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.
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.