Why do sales tax increases have a greater impact on people with a lower income than on people with a higher income?

A: Higher income people spend more of their income on basic needs.

B:Higher income people spend less of their income on luxury items.

C: Lower income people spend more of their income on basic needs.

D: Lower income people spend less of their income on luxury items.

Question

Sonia Conley

Business

1 November, 12:49

Why do sales tax increases have a greater impact on people with a lower income than on people with a higher income?

A: Higher income people spend more of their income on basic needs.

B:Higher income people spend less of their income on luxury items.

C: Lower income people spend more of their income on basic needs.

D: Lower income people spend less of their income on luxury items.

+2

Answers (1)

Know the Answer?

Brooks Mcdonald · Answer 1

I'm pretty sure it would be C considering that the sales tax is on basic needs and most poor people can only afford their basic needs, so making them cost more would hurt them a lot.