The sales tax is a regressive tax because the

A) percentage of income paid as taxes falls as income rises.
B) administrative costs associated with the collection of the tax are relatively high.
C) percentage of income paid as taxes is constant as income rises.
D) tax tends to reduce the total volume of consumption expenditures.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, leading to a higher tax burden on lower-income earners.

Sales Tax

A tax imposed by governments on sales of goods and services, typically a percentage of the sale price paid by the consumer.

Income Rises

An increase in the amount of money received by an individual or household, which can affect purchasing power and economic status.