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According to Economic Principles, a Tax on an Item Such as Bread Would Be Considered a Regressive Tax. True False

Problemas

According to economic principles, a tax on an item such as bread would be considered a regressive tax. True False

Roztwór

Patricia avanzado · Tutor durante 1 años
Weryfikacja ekspertów
4.7 (220 Votos)

Respuesta

True

Explicación

## Step 1A regressive tax is a type of tax that takes a larger percentage of income from low-income earners than from high-income earners. This is because the tax is applied uniformly to all taxpayers, regardless of their income level.## Step 2In the case of a tax on an item such as bread, it would be considered a regressive tax. This is because the tax is applied uniformly to all taxpayers, regardless of their income level.## Step 3For example, a person with a lower income would spend a larger proportion of their income on the tax, as they would have to spend a larger proportion of their income on basic necessities such as bread. This is in contrast to a person with a higher income, who would spend a smaller proportion of their income on the tax, as they would have more disposable income to spend on other items.