Suppose you live in a state with a regressive sales tax system. You earn $20,000 a year. You pay 5% sales tax on items bought from a local hardware store. What percentage of sales tax would a person who makes twice as much money as you pay for merchandise at the same hardware store?

Question

Business

Robbins

13 January, 20:30

Suppose you live in a state with a regressive sales tax system. You earn $20,000 a year. You pay 5% sales tax on items bought from a local hardware store. What percentage of sales tax would a person who makes twice as much money as you pay for merchandise at the same hardware store?

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Answers (1)

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Chance · Answer 1

Answer: 5%

Explanation:

Based on the information provided above, your earning has nothing to do with your sales tax. Your sales tax is simply the tax you pay on any item (s) you purchase. Therefore, a person who makes twice as much money as you will also pay for merchandise at the same hardware store at same tax rate of 5%.