Sales and excise taxes tend to be ___________ because low income people tend to spend a _________ fraction of their income than high income people.

Question

Quizplus · Accepted Answer

Sales and excise taxes tend to be regressive because low income people tend to spend a larger fraction of their income on these taxes compared to high income people. This means that the tax burden falls more heavily on low-income individuals, making it regressive.

Sales and Excise Taxes Tend to Be ___________ Because Low