Question

Why do sales tax increases have a greater impact on people with a lower income than on people with a higher income?

A: Higher income people spend more of their income on basic needs.
B:Higher income people spend less of their income on luxury items.
C: Lower income people spend more of their income on basic needs.
D: Lower income people spend less of their income on luxury items.

Answer 1

C

Step-by-step explanation:

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Answer 2

I'm pretty sure it would be C considering that the sales tax is on basic needs and most poor people can only afford their basic needs, so making them cost more would hurt them a lot.