Which of the following statements is true ?
A) A sales tax on food is a regressive tax.
B) The largest source of federal government tax revenue is individual income taxes.
C) The largest source of state and local governments tax revenue is sales and excise taxes.
D) All of the above are true.
E) None of the above are true.

Question

Quizplus · Accepted Answer

A sales tax on food is considered regressive because it takes a larger percentage of income from low-income earners. Individual income taxes are indeed the largest source of federal tax revenue. Sales and excise taxes are significant sources of revenue for state and local governments.

Which of the Following Statements Is True