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Question : A tax is said to be regressive when its burden falls on

Option 1: Less heavily on the poor than on the rich.

Option 2: More heavily on the poor than on the rich.

Option 3: Equally on the poor as on the rich.

Option 4: None of these


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: More heavily on the poor than on the rich.


Solution : The correct option is more heavily on the poor than on the rich.

Regressive taxes take a larger share of lower-income people's income than they do from higher-income people. In other words, the proportion of income paid in taxes declines as income rises. This indicates that, about their overall financial status, persons with lower earnings bear a share of the tax burden.

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