State sales taxes are generally regressive, but can be designed to be less so.

Question

Quizplus · Accepted Answer

State sales taxes are generally regressive because they require everyone, regardless of income level, to pay the same percentage of tax on purchases. However, some states have implemented exemptions or reduced rates for certain necessities, such as food and clothing, in order to make the tax system less regressive. By doing so, the burden of the tax is shifted away from low-income individuals who may spend a larger portion of their income on necessities.

State Sales Taxes Are Generally Regressive, but Can Be Designed