GMAT Verbal Reasoning Practice Test 4

Question : 35 of 100

Marks: +1, -0

The amount of money citizens spend on products subject to the state tax tends to be equal across income levels.
The federal income tax favors citizens with high incomes, whereas the state sales tax favors citizens with low incomes.
Citizens with low annual incomes can afford to pay a relatively higher percentage of their incomes in state sales tax, since their federal income tax is relatively low.
The lower a state’s sales tax, the more it will tend to redistribute income from the more affluent citizens to the rest of society.
Citizens who fail to earn federally taxable income are also exempt from the state sales tax.

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