A sales tax is a regressive tax even when it is applied at a single rate on all transactions.

Question

Quizplus · Accepted Answer

A sales tax takes a larger percentage of income from low-income individuals than from high-income individuals. This is because the tax is applied at the same rate regardless of income level, so low-income individuals end up paying a larger percentage of their income in sales tax compared to high-income individuals.

A Sales Tax Is a Regressive Tax Even When It