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A 7.25 Percent Sales Tax

Question 89

Multiple Choice

A 7.25 percent sales tax


A) Is a proportional tax because the rate is the same for all income groups.
B) Is a progressive tax because high-income individuals buy more goods and services than low-income individuals.
C) Is a regressive tax because poor individuals consume a higher percentage of their income than high-income individuals.
D) Does not impose an additional tax burden on most individuals because the sales tax is paid entirely by the seller.

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