One way to levy a tax on the things people buy is through a sales tax—a tax on purchases that is typically a percentage of the purchase price. For example, in British Columbia everyone, regardless of their income, pays a 7% sales tax on their purchases. Do you think that this tax is progressive, regressive, or neither? Do you think that it has the same impact on low-income and high-income families? Why or why not?

Learning Objective 8.4 Be prepared to join the debate about income redistribution.