Question

Which type of tax describes excise taxes, sales taxes, and tolls?(1 point)
Responses

flat tax
flat tax

progressive tax
progressive tax

use tax
use tax

regressive tax

Answer 1

Excise taxes, sales taxes, and tolls are best described as **regressive taxes**. Regressive taxes take a larger percentage of income from low-income earners compared to high-income earners, as the tax rate does not increase with income levels.