Which statement best defines a regressive tax system
A)A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers.
B)A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers.
C)A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers.
D)A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.

Question

Quizplus · Accepted Answer

A regressive tax system is one where the tax rate decreases as the income of the taxpayer increases. In this case, a general sales tax on food is regressive because low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers. Therefore, the burden of the tax falls disproportionately on low-income taxpayers.

Which Statement Best Defines a Regressive Tax System