Question

In: Economics

Which of the following is the best example of a “regressive" tax? Group of answer choices...

Which of the following is the best example of a “regressive" tax?

Group of answer choices

A.High marginal tax rates

B.Sales tax levied on the sale of retail goods

C.US Federal income tax

D.New York State income tax

Solutions

Expert Solution

Regressive type type of taxes are those taxes in which as income rises income tax decreases

it is just opposite of progressive tax system

examples a progressive tax system is New York income tax US ,federal income tax

but when we talk about regressive income tax Then it's example can be sales tax Levied on the sale of retail goods

the correct answer is option B


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