Eli has annual earnings of $100,000 and Molly has annual earnings of $50,000.Each consumer goes to the mall and purchases a microwave oven for $100,and each pays an additional 7%,or $7,in sales tax.This tax is:

Question

Quizplus · Accepted Answer

The sales tax is a fixed rate of 7%, so regardless of Eli and Molly's income levels, they both pay the same amount for the microwave and the same amount in sales tax. Therefore, the tax does not take into account their income levels and is not based on their ability to pay, which makes it regressive.

Eli Has Annual Earnings of $100,000 and Molly Has Annual