Which statement is TRUE?

Question

Quizplus · Accepted Answer

Effective excise tax rates have indeed risen for low-income groups over the last 20 years. Excise taxes are often considered regressive, meaning they take a larger percentage of income from low-income earners than from high-income earners. This is because excise taxes are typically levied on goods and services that make up a larger proportion of the spending of low-income individuals. Over time, as these taxes increase or as the consumption patterns of low-income groups remain constant or grow, the effective rate of these taxes on low-income groups can rise.

Which Statement Is TRUE