A state's sale tax is 8%. This places a higher burden on low income individuals. This represent the regressive tax system.
Low-income individuals generally pay a higher amount of taxes as compared to the high-income earners under a regressive tax system.
This is because the government does the assessment of tax as a percentage of the value of the asset which a taxpayer purchases and owns. This type of tax has no correlation with the earnings of the individual or his income level.
Regressive taxes includes different type of taxes such as property taxes, sales taxes on goods, and excise taxes on consumables for example gasoline or airfare.
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