Series 7 Exam Question 126: Answer and Explanation

Question: 126

All of the following are regressive taxes EXCEPT

• A. income
• B. sales
• C. gasoline
• D. alcohol

Correct Answer: A

Explanation:

A. Sales, gasoline, and alcohol taxes are all regressive, meaning that all people regardless of income or net worth are taxed at the same rate. With progressive taxes, the more money you make, the higher your tax rate. Therefore, income tax is a progressive tax.