Question
Is a sales tax regressive, proportional, or progressive? Explain your answer.
Solution
VerifiedAnswered 1 year ago
Answered 1 year ago
Sales tax is regressive.
For example A and B both buy a computer with 1000 dollars and pay a state sales tax of 6% (60 dollars). If A has larger income than B, then he will pay smaller percentage of his income.
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