Why Do Economists Generally Classify Sales and Excise Taxes as Regressive

question 49

Multiple Choice

Why do economists generally classify sales and excise taxes as regressive?

• A)Because they are the most unpopular taxes
• B)Because they tax everyone at a different rate,regardless of income
• C)Because they raise relatively little revenue
• D)Because lower-income persons spend a greater proportion of their earnings on items subject to taxation than do upper-income persons
• E)Because they are excessively high

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Definitions:

Avoidance

A conflict management strategy where parties ignore the problem at hand, or distance themselves from the conflict to avoid confrontations.

Problem Solving

The process of identifying a problem, developing potential solutions, and implementing a solution.

Competitive Conflict

A situation where businesses or entities vie against each other for the same objective, leading to conflict due to their competing interests or goals.

Coercive

describes an approach or action intended to compel or force someone to follow orders or obey through pressure or threats.