For which group of citizens is a sales or excise tax often considered to be unfair?
A)No one in particular, because it is a proportional tax that treats everyone the same.
B)Upper-income people, because they have more income.
C)Lower-income groups, who pay a greater percentage of their income toward the tax than do the wealthy.
D)The middle class, because they comprise the largest demographic group in society.

Question

Quizplus · Accepted Answer

Lower-income groups often have to spend a larger percentage of their income on basic needs, such as food and clothing, which are subject to sales and excise taxes. Therefore, these taxes are seen as regressive, meaning they disproportionately burden low-income individuals and families. Upper-income people may be able to afford the higher tax rate without it affecting their quality of life as much. The other options are incorrect because a sales or excise tax is not proportional, as it is a percentage of the price of a good or service, rather than a fixed amount, and is therefore not equal for everyone. Furthermore, the middle class being the largest demographic group in society does not affect the fairness of the tax.

For Which Group of Citizens Is a Sales or Excise