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Why Are Sales Taxes Called Regressive Taxes

Question 54

Multiple Choice

Why are sales taxes called regressive taxes?


A) Because food and drugs are often exempt
B) Because the more one makes, the lower the rate of sales tax that is applied to one's purchases
C) Because poorer people pay a higher percentage of their income than richer people
D) Because it applies to sales taxes
E) Because they discourage the purchase of some products

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