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

User Benny Hill
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Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an example of a "regressive tax".

A regressive tax refers to a tax connected consistently, taking a bigger level of pay from low-salary workers than from high-pay workers. It is contrary to a progressive tax, which takes a bigger rate from high-pay workers.

A regressive tax influences individuals with low livelihoods more seriously than individuals with high salaries since it is connected consistently to all circumstances, paying little respect to the citizen. While it might be reasonable in a few occurrences to assess everybody at a similar rate, it is viewed as out of line in different cases.

User Srkdb
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"Your department store receipt says that you paid a 5% sales tax on sports equipment." This type of sales tax is an example of regressive tax. 
User Darshini
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