Jamal earns $160,000 per year and Josephina earns $80,000 per year. They both pay the same price to buy the identical automobile and each pays $1,600 in sales tax. In relation to their relative incomes, this is an example of a

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A regressive tax takes a larger percentage of income from low-income earners than from high-income earners. Since Jamal and Josephina pay the same amount in sales tax despite their different incomes, the tax is regressive relative to their incomes.

Jamal Earns $160,000 Per Year and Josephina Earns $80,000 Per