Question

Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an example of a _____.

Answer 1

Answer:Regressive tax

Explanation: gradpoint

Answer 2

The correct answer is Regressive Tax.

Regressive Tax is described as a tax imposed in this type of way that the tax charge decreases as the quantity concern to taxation increases. The word "Regressive" describes a distribution impact on earnings or expenditure, regarding the way the fee progresses from high to low, in order that the average tax fee exceeds the marginal tax fee.