One state adds a 7 percent sales tax to the price of most products purchased within its jurisdiction. This tax, therefore, if viewed as tax on income, has the reverse effect of the federal income tax: the lower the income, the higher the annual percentage rate at which the income is taxed.
The conclusion above would be properly drawn if which of the following were assumed as a premise?

Question

Examsnet · Accepted Answer

Correct Answer is :  The amount of money citizens spend on products subject to the state tax tends to be equal across income levels.

GMAT Verbal Reasoning Practice Test 4