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Q. Define Regressive Tax?
Regressive Tax: A tax in that lower-income individuals or households bear a proportionately greater burden of the tax. Sales taxes aretypically considered regressive (Because lower-income households don't generally save, and thereforeshould pay sales tax on a larger proportion of their total income).
The Healthy Spring Water company sells bottled water for offices / homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2,000 bottles per day.
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