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30 July, 22:00

The Roosevelt's and the jaspers live in the same city and pay the same sales tax rate, and both families made 16,000 in taxable purchase last year if the Roosevelt's made 91,000 and the jaspers made 37,000 last year is the sales tax in their city an example of a regressive tax

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  1. 31 July, 00:14
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    Yes, the sales tax in their city is an example of regressive tax

    Step-by-step explanation:

    Firstly, we need to understand what is meant by the term regressive tax.

    What is meant by a regressive tax system is a system of taxation in which there is a decrease in tax rate as there is an increase in amount subjected to tax.

    Now, the key to knowing if what we have in the question is a regressive taxation is by calculating the percentage of the tax that was paid.

    For the Roosevelt's, the percentage of tax paid would be 16,000/91,000 * 100% = 17.6%

    For the Jasper's, the percentage of tax paid would be 16,000/37,000 * 100% = 43.24%

    We can see that at a lower amount subjected to tax, the Jasper's paid more and thus we can conclude irrevocably that sales tax in their city is an example of a regressive tax
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