Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Terry and Jennifer, both single individuals, live in a state that has a 5.6% sales tax rate. Terry earns $10,000 and Jennifer earns $15,000.

4. Terry and Jennifer, both single individuals, live in a state that has a 5.6% sales tax rate. Terry earns $10,000 and Jennifer earns $15,000. Both buy $1,000 worth of goods and pay sales tax of $56. While this sales tax structure appears proportional (flat) some people would argue that it is regressive in this situation. Explain how someone could argue that the sale tax structure, as applied in this situation, is regressive (50 word minimum).
image text in transcribed
4. Terry and Jennifer, both single individuals, live in a state that has a 5.6% sales tax rate. Terry earns $10,000 and Jennifer earns $15,000. Both buy $1,000 worth of goods and pay sales tax of $56. While this sales tax structure appears proportional (flat) some people would argue that it is regressive in this situation. Explain how someone could argue that the sale tax structure, as applied in this situation, is regressive ( 50 word minimum)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AML Auditing Understanding Transaction Monitoring

Authors: Bob Walsh

1st Edition

1539519740, 978-1539519744

More Books

Students also viewed these Accounting questions