Answer:
The correct answer is option B. False.
Explanation:
The United States has a progressive tax system.
This means that <u>the percentage we must pay to the treasury (tax rate) increases while the amount of a taxable transaction, which includes a tax called VAT, also increases.
</u>
That is, in The United States as you make more transactions that include VAT, you will have to pay more to the treasury.
While the regressive tax is quite the opposite, instead of applying a tax to those who have more income as in the previous case, those who have less income will end up paying more.
This does not mean that those who have less income will have a higher tax, but that everyone will receive the same tax equally, so if a person has low income and has to pay the same percentage as a person who has a lot of income, he will end up paying more.
