Because everyone pays the same rate of sales tax on purchases, and less wealthy people spend most of their income buying things, as opposed to saving and investing, what kind of impact does the sales tax have?

Question

Quizplus · Accepted Answer

Sales tax is considered regressive because it takes a larger percentage of income from less wealthy individuals who spend most of their income on taxable goods, compared to wealthier individuals who can save and invest more of their income.

Because Everyone Pays the Same Rate of Sales Tax on Purchases