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Alex
3 years ago
11

Categorizing U.S. taxes

Business
1 answer:
Sergeeva-Olga [200]3 years ago
5 0

Answer:

A

Explanation:

A regressive tax is a tax system where the same tax rate is applied uniformly. As a result, those earning less income are taxed higher than those earning more income.  

Sales tax is an example of a regressive tax.

If sales tax is 5%. Worker A earns $100 and worker B earns $1000. Both buy a good worth $50 before tax.  the sales tax is worth $2.5.

The tax comprises $2,5 / 100 = 2.5% of worker A's income and $2,5 / $1000 = 0.025% of Worker B's income.

It can be seen that worker A who earns less income is taxed higher

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