How does a regressive tax impact people with lower incomes?
A) They pay a higher percentage of their incomes in tax than do people with higher incomes.
B) They pay a lower percentage of their incomes in tax than do people with higher incomes.
C) They pay the same percentage of their incomes in tax as do people with higher incomes.
D) They do not have to pay unless their incomes exceed a certain amount.

Question

Quizplus · Accepted Answer

A regressive tax system tends to have a greater impact on people with lower incomes because they pay a higher percentage of their incomes in taxes compared to people with higher incomes. This is because regressive taxes do not take into account an individual's ability to pay, which means that people with lower incomes are more heavily burdened by the tax.

How Does a Regressive Tax Impact People with Lower Incomes