Sales taxes tend to be regressive, affecting poor people more severely than wealthy people. When all purchases of consumer goods are taxed at a fixed percentage of the purchase price, poor people pay a larger proportion of their income in sales taxes than wealthy people do.
It can be correctly inferred on the basis of the statements above that which of the following is true?

Question

Examsnet · Accepted Answer

Correct Answer is :  Poor people spend a larger proportion of their income on purchases of consumer goods than wealthy people do.

GMAT Verbal Reasoning Practice Test 3