Question

which sentence best describes a regressive tax?
a. regressive taxes place a higher burden on people who earn less compared to wealthier tax payers
b. regressive taxes place a higher burden on wealthy tax payers compared to people who earn less
c. regressive taxes result in poor tax payers paying no taxes
d. regressive taxes prevent tax rates from rising over time

Explanation:

A regressive tax is a tax where the average tax rate decreases as the taxable amount increases. This means that lower - income earners (people who earn less) pay a higher proportion of their income in taxes, so they bear a higher tax burden compared to wealthier taxpayers.

• Option B is incorrect because regressive taxes place a higher burden on lower - income earners, not wealthier ones.
• Option C is incorrect as regressive taxes do not mean poor taxpayers pay no taxes.
• Option D is incorrect as regressive taxes are not about preventing tax rates from rising over time.

Answer:

A. Regressive taxes place a higher burden on people who earn less compared to wealthy taxpayers