Heatboy4172 Heatboy4172
  • 02-01-2020
  • Business
contestada

Sales taxes tend to be __________ because low income individuals tend to spend more of their income.

Respuesta :

jitushashi120 jitushashi120
  • 08-01-2020

Answer:

Regressive.

Explanation:

Sales tax is regressive as it mostly collected from poor or low income consumer, as they spend most of thier income and hardly save money or efford for luxury goods. Sales tax is very important source of revenue for the government, however, it impact heavily on low income people. Low income consumer spend most of the income than consumer with income, which create gap or imbalance between poor and rich.

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