Which of the Following Is a Regressive Tax

question 109

Multiple Choice

Which of the following is a regressive tax?

• A) A state tax of 5 percent of income.
• B) A local sales tax of 5 percent.
• C) The federal individual income tax.
• D) A federal flat tax of 30 percent.

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Definitions:

Straight-line Method

A method of calculating depreciation or amortization by evenly distributing the cost of an asset over its expected useful life.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing its decrease in value over time.

Shipping Costs

Expenses associated with transporting goods from one location to another, often considered part of the cost of sales or inventory.

Sales Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. In this context, it specifically refers to a tax on sales of goods and services.