Why are indirect taxes, such as VAT of $20\%$ on goods and services, considered regressive when high-income and low-income buyers are compared?
- AHigh-income purchasers pay a higher percentage of their income in tax.
- BHigh-income purchasers pay a lower percentage of their income in tax.
- CLow-income purchasers pay a lower percentage of their income in tax.
- DLow-income purchasers and high-income purchasers pay the same percentage of their income in tax.