A regressive tax
A)imposes a greater burden on those with higher incomes than on those with lower incomes
B)is based on the benefits received principle.
C)takes a greater percentage of the income of lower-income groups than of higher-income groups.
D)is considered to be the most equitable type of tax
E)is based on the ability to pay principle

Question

Quizplus · Accepted Answer

A regressive tax takes a greater percentage of the income of lower-income groups than of higher-income groups. This means that those with lower incomes end up paying a higher proportion of their income in taxes, which can place a greater burden on them compared to those with higher incomes. Therefore, choice C is the correct answer.

A Regressive Tax