Which of the following is true?
A) A regressive tax rate structure imposes an increasing marginal tax rate as the tax base increases.
B) Regressive tax structures are the most common tax rate structure.
C) In terms of effective tax rates, a sales tax can be viewed as a regressive tax.
D) An example of a regressive tax is an excise tax.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

A regressive tax imposes a decreasing marginal tax rate as the tax base increases, and is often criticized for placing a higher burden on low-income individuals. A sales tax, which is a type of consumption tax, is generally viewed as regressive because it takes a larger percentage of income from lower-income individuals who must spend a higher proportion of their income on taxable goods and services.

Which of the Following Is True