A sales tax is deemed ________ because everybody pays at the same rate,so that the total income paid in taxes goes down as the total income goes up.

Question

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A regressive tax system is one where everyone pays the same rate of tax, regardless of their income level. This means that lower-income individuals end up paying a higher percentage of their income in taxes than higher-income individuals. As a result, the total income paid in taxes decreases as income goes up, making it regressive. A sales tax is an example of a regressive tax.

A Sales Tax Is Deemed ________ Because Everybody Pays at the Same