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

## Step 1<br />A 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.<br /><br />## Step 2<br />In 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.<br /><br />## Step 3<br />For 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.