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Nikki is buying a new house and new furniture to decorate her new home. What kind of tax — progressive or regressive — will Nikki pay on each of her new purchases?

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A regressive tax is that tax rate that Nikki will pay on the purchase on the new house and new furniture.

What is a regressive tax?

This refers to a tax for which the percentage of income paid in taxes decreases as income increases.

These tax type are paid regardless of income such as the sales taxes, sin taxes, and property taxes.

Therefore, the regressive tax is that tax rate that Nikki will pay on the purchase on the new house and new furniture.

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