Question

Econ question, please help : )

Suppose you live in a state with a regressive sales tax system. You earn $20,000 a year. You pay 5% sales tax on items bought from a local hardware store. What percentage of sales tax would a person who makes twice as much money as you pay for merchandise at the same hardware store?

2.5%
5%
7.5%
10%

Answer 1

B) 5%

Step-by-step explanation:

Got it Right!

Answer 2

5%

Explanation: Because it doesnt matter how much your income is, sales tax is sales tax. Means your paying tax on the item bought.

(This may be wrong, but with the information given it's what makes sense.)