State sales taxes are considered by many economists to be _____ because _____.
A) flat; the amount of tax collected is the same regardless of the amount of the purchase
B) lump sum; the percentage of each item that is collected in taxes is the same for everyone
C) progressive; higher-income individuals buy more goods and services and pay more in taxes
D) regressive; lower-income individuals pay a larger percentage of their income in sales taxes

Question

Quizplus · Accepted Answer

Sales taxes are considered regressive because lower-income individuals tend to spend a higher proportion of their income on goods and services that are taxed, leading to a larger percentage of their income going towards sales taxes compared to higher-income individuals.

State Sales Taxes Are Considered by Many Economists to Be