Which of the following statements is correct?
A)A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers.
B)A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers.
C)A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers.
D)A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.

Question

Quizplus · Accepted Answer

A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers. This means that the tax would disproportionately affect low-income taxpayers as they would have to allocate a larger portion of their income towards paying the tax compared to high-income taxpayers.

Which of the Following Statements Is Correct