Answer:
This is an example of a c) regressive tax system
Explanation:
Most economies do not have a regressive tax system as it clearly burdens the poor. Instead, it benefits the middle and higher income earns as they have to give less in taxes.
Supporters of such a tax system argue that it motivates people to work harder. However, in reality, low-income people find it difficult to meet their basic needs and they have a reduced spending power.
This system is a complete opposite of a Progressive tax, where the more you earn, the higher the percentage of your income you have to pay in taxes. In countries such as UK, Sweden, and even the United States, we have a progressive income tax.
