Statement I: A tax on cigarettes is regressive.
Statement II: The federal personal income tax is more progressive today than it was in 1980.

Question

Quizplus · Accepted Answer

Statement I is true because a tax on cigarettes tends to have a greater impact on low-income individuals who may have less disposable income to absorb the extra cost. This makes it regressive. 
Statement II is false because the federal personal income tax has become less progressive since 1980. The top tax rates were higher in 1980 than they are today, and there were more tax brackets that taxed higher incomes at higher rates. The tax system has become flatter over time, and the top earners now pay a smaller share of their income in taxes than they did in 1980.

Statement I: a Tax on Cigarettes Is Regressive