When the poor pay sales tax on the items they purchase, the tax takes a much smaller proportion of their resources than it does from the non-poor.

Question

Quizplus · Accepted Answer

This statement is false. Sales tax is typically a fixed percentage of the item's price, which means it takes a higher proportion of the poor's resources than the non-poor, as they have less disposable income. This is considered regressive taxation.

When the Poor Pay Sales Tax on the Items They