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Why are regressive taxes considered heaviest on low income taxpayers?

a.low income people should not have to pay taxes.

b.the tax is on their income, and they pay a higher income tax.

c.a sales tax is going to be a greater percent of a wealthy persons income than a low income persons income.

d.the tax is levied on something other than income but ends up being a higher percentage of their income than it would be for a higher earner.

Verified Answer :

The answer is D. The tax is levied on something other than income but ends up being a higher percentage of their income than it would be for a high earner.

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A regressive tax is the opposite of a progressive tax and is applied uniformly regardless of the taxpayer, so it ends up taking a larger percentage from low income tax payers than from high income tax payers.

D is the correct answer because eventually the regressive tax uniformity tends to be a disadvantage for the lower income taxpayer who has to pay the same amount of taxes with much less income than a high income taxpayer.

When it comes to income tax, the United States has a progressive taxation system which mean that the taxpayers who earn a higher income will pay more, but there are some inconsistencies to the system like state sales taxes, user fees and even property taxes to some extend. These inconsistencies are considered a form of regressive taxes,  like levies imposed which ultimately affect low income taxpayers.


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