What type of tax is often applied to products like gasoline
and tobacco?
property tax
progressive tax
regressive tax

Gasoline and tobacco products are often subject to a regressive tax, meaning that the tax takes a larger percentage of income from low-income earners than from high-income earners. This type of tax can disproportionately affect those who rely on these products, making it a topic of debate among policymakers and economists.

In real-world terms, you can think of regressive taxes like this: when you fill up your tank or buy a pack of cigarettes, you’re paying a fixed amount in tax regardless of your income. So, a wealthy person might not bat an eye at that extra cost, but for someone on a tight budget, it could hurt! It’s a balancing act for governments when trying to raise revenue while considering the impact on their citizens.