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

Question

Quizplus · Accepted Answer

A regressive tax is one where lower-income individuals pay a higher percentage of their income in taxes than higher-income individuals. A 7 percent general sales tax would be regressive because lower-income individuals tend to spend a larger portion of their income on taxable goods than higher-income individuals. Therefore, a higher percentage of their income would be going towards the tax. The other options listed are either progressive taxes (federal inheritance tax and personal income tax) or a flat tax (corporate income tax).

Using Income as the Tax Base,which of the Following Best