Using income as the tax base, which of the following best illustrates a regressive tax?

Question

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A regressive tax is one in which the tax rate decreases as income increases. A 7 percent general sales tax is regressive because it takes a larger percentage of the income of lower-income individuals than of higher-income individuals, as lower-income individuals typically spend a larger portion of their income on basic goods and services that are subject to the tax. The other options (federal inheritance tax, corporate income tax, personal income tax) are all progressive taxes, meaning that the tax burden increases as income increases.

Using Income as the Tax Base, Which of the Following