Regressive taxes impose a heavier burden on low-income groups than on the wealthy.

Question

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Regressive taxes, such as sales tax, tend to take a larger percentage of income from low-income individuals compared to higher-income individuals since they have to spend a larger share of their income on essential items subject to the tax. In contrast, progressive taxes like income tax put a larger burden on higher-income individuals as they are taxed at a higher rate.

Regressive Taxes Impose a Heavier Burden on Low-Income Groups Than