Question

A sales tax is considered a regressive tax because ____.
it taxes higher incomes families more than lower income families
it taxes lower income families more than higher income families
it taxes high and low income families equally
none of these: A sales tax is not a regressive tax, but rather a progressive tax.

Answer 1

it taxes lower income families more than higher income families so it is regressive

Answer 2

Regressive tax is a larger percentage of taxes are taken from people with low incomes then from people with high incomes. A sales tax is considered a regressive tax because because people with lower incomes share a larger burden of taxes when compared amount of taxes to their income level.Or in other words because it taxes higher incomes families more than lower income families . Correct answer: A