Question

Since lower-income people spend a larger proportion of their incomes on groceries than do higher-income people, if grocery stores were required by law to charge a 10-cent fee for disposable bags, this fee could be considered a Select one: a. progressive tax. b. proportional tax. c. income tax. d. regressive tax.

Answer 1

Answer:

d. regressive tax.

Explanation:

Because as we can see on the given statements that lower income people come to buy grocery than the higher income people, so the 10-cent fee for disposable bags will come under regressive tax, as we know that regressive tax is a tax in which is taken or collected largely from the lower income people than the higher income people.

So, the correct option will be OPTION (d).