Question

Which of the following is an example of a regressive tax?

• A. Income tax
• B. Sales tax
• C. Corporate tax
• D. None of the above

Answer 1

Answer:

B. Sales tax

• Sales tax is considered regressive because it is a flat rate applied uniformly on purchases, impacting lower-income earners more since they spend a larger portion of their income on consumption compared to higher-income earners