A sales tax on a consumer good on which the wealthy spend a higher proportion of their income than the poor would be progressive.

Question

Quizplus · Accepted Answer

A progressive tax is one in which the tax rate increases as the taxable income increases. In this case, the wealthy spend a higher proportion of their income on the consumer good than the poor, so they would pay a higher proportion of the tax.

A Sales Tax on a Consumer Good on Which the Wealthy