A VAT (value added tax):
A)Is regressive in its effect.
B)Has not proved popular outside of the U.S.
C)Is not a tax on consumption.
D)Is used exclusively by third world (less developed) countries.
E)None of the above.

Question

Quizplus · Accepted Answer

A VAT is regressive in its effect because it imposes the same rate on all goods and services, regardless of the buyer's income, thereby affecting the low-income households disproportionately more than the high-income households.

A VAT (Value Added Tax)