A VAT (value added tax):
A) Is regressive in its effect.
B) Has not proved popular outside of the U.S.
C) Is not a tax on consumption.
D) Is used exclusively by third world (less developed) countries.
E) None of these.

Question

Quizplus · Accepted Answer

A VAT is regressive because it is a flat tax that is a percentage of the price of goods and services, which means it takes a larger proportion of income from low-income individuals than high-income individuals.

A VAT (Value Added Tax)