The Various Provincial Sales Taxes Are Mildly Regressive Because

question 49

Multiple Choice

The various provincial sales taxes are mildly regressive because

• A)richer households spend more in total and therefore pay more sales tax.
• B)poorer households tend to spend a larger proportion of their incomes than richer households.
• C)they are indirect taxes.
• D)they are value added taxes.
• E)richer households can avoid paying sales taxes while poorer households cannot.

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Definitions:

Producing

The action of making, creating, manufacturing, or bringing something into existence.

Purchasing

The process of acquiring goods or services to accomplish the goals of an organization or individual.

Tangible Property

Physical assets that can be seen, touched, and possessed, such as real estate, vehicles, and equipment.

Physical Existence

Physical existence refers to the state of being tangible, having a material body or form that can be perceived by the senses.