If a $100,000 Household Consumes 50 Percent of Its Income

If a $100,000 household consumes 50 percent of its income whereas a $10,000 household consumes 90 percent of its income,then a 5 percent sales tax

A) affects both households equally.
B) effectively taxes the income of the low-income household at the rate of 4.5 percent and the income of the high-income household at 2.5 percent.
C) taxes the incomes of both households at the rate of 5 percent.
D) costs the low-income household $500 per year and the high-income household $5,000 per year; therefore, a greater burden is placed on the high-income household.
E) effectively duplicates the impact of a rising marginal tax rate.