asked 206k views
3 votes
Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an example of a _____.

2 Answers

5 votes

Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an example of a "regressive tax".

A regressive tax refers to a tax connected consistently, taking a bigger level of pay from low-salary workers than from high-pay workers. It is contrary to a progressive tax, which takes a bigger rate from high-pay workers.

A regressive tax influences individuals with low livelihoods more seriously than individuals with high salaries since it is connected consistently to all circumstances, paying little respect to the citizen. While it might be reasonable in a few occurrences to assess everybody at a similar rate, it is viewed as out of line in different cases.

answered
User Srkdb
by
8.3k points
5 votes
"Your department store receipt says that you paid a 5% sales tax on sports equipment." This type of sales tax is an example of regressive tax. 
answered
User Darshini
by
7.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.