Question

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?

A. 2.5%

B. 5%

C. 7.5%

D.10%

Answer 1

Answer:5%

Explanation: it was the correct option

Answer 2

5%

Step-by-step explanation:

5 percent Tax on revenue

The same amount of income tax is paid by an individual who makes $20,000 a year in the hardware industry as by a person who earns $40,000 a year in the hardware business.