An example of a regressive tax is?

a

the personal income tax

b

the graduated corporation income tax

c

a general sales tax

d

the inheritance tax

e

the excise tax

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Correct Option
c

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Discussions (6)

Chuks612
9 years ago

Please it's A. Sales tax doesn't decrease.. Only personal income tax.

Chuks612
9 years ago

Incorrect.. It's A(personal income tax)

PuertoSans
9 years ago

Option C is correct.



A regressive tax is one whose rate increases as the payer's income decreases.



People who earn low income pay a higher percentage of their income as general sales tax than people who earn high wages. For this reason, essential items like food are exempted from the general sales tax.

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