most sales taxes are regressive because\ntaxable purchases are capped at $50,000 a year\nwealthier people…

most sales taxes are regressive because\ntaxable purchases are capped at $50,000 a year\nwealthier people pay less tax on a purchase than poorer people would pay on the same item\nmost people cannot afford to buy such luxury goods as yachts, furs, and diamonds\npoorer taxpayers spend a larger proportion of their income on taxable goods and services than do wealthier taxpayers.

most sales taxes are regressive because\ntaxable purchases are capped at $50,000 a year\nwealthier people pay less tax on a purchase than poorer people would pay on the same item\nmost people cannot afford to buy such luxury goods as yachts, furs, and diamonds\npoorer taxpayers spend a larger proportion of their income on taxable goods and services than do wealthier taxpayers.

Answer

Brief Explanations:

A regressive tax is one where lower - income taxpayers pay a higher proportion of their income in taxes compared to higher - income taxpayers. Sales taxes are regressive because poorer taxpayers spend a larger share of their income on taxable goods and services, while wealthier taxpayers save more and thus pay a smaller proportion of their income in sales tax.

Answer:

E. poorer taxpayers spend a larger proportion of their income on taxable goods and services than do wealthier taxpayers.