163k views
5 votes
Which term best describes sales tax?

1 Answer

1 vote
The two options are indirect and regressive

Indirect means that the goods are taxed and not the income or profit. This is used in sales because profits might not even be made so the person would not be able to pay the taxes. It is regressive because it is the same for everyone, meaning that if you have less money the tax will effect you more, and vice versa.
User Y Durga Prasad
by
5.7k points