Which of the following can be classified as a regressive tax?
A) Federal corporate income tax.
B) Federal personal income tax.
C) Federal gasoline tax.
D) All of the above.

Question

Quizplus · Accepted Answer

A regressive tax is one in which the tax burden falls more heavily on lower-income individuals. The federal gasoline tax is an example of a regressive tax because it is a flat tax that is paid by all consumers, regardless of income level. This means that lower-income individuals pay a larger percentage of their income in gasoline taxes than higher-income individuals. The federal corporate income tax and federal personal income tax are both progressive taxes, meaning that they are designed to impose a larger burden on higher-income individuals.

Which of the Following Can Be Classified as a Regressive