Which of the following is commonly believed about sales tax?

Sales tax is commonly believed to disproportionately impact lower-income individuals, which is why the first option is the most recognized perspective. This belief stems from the fact that sales tax is calculated as a percentage of the total price of goods and services purchased. As lower-income households tend to spend a larger portion of their income on everyday necessities—including food, clothing, and household supplies—they end up paying a higher proportion of their income in sales tax compared to wealthier individuals.

In contrast, wealthier individuals can afford to spend on luxury items that would incur sales tax, but their overall expenditures on these goods represent a smaller percentage of their total wealth. Consequently, this creates a regressive tax effect, where lower-income earners contribute a higher relative burden than their wealthier counterparts.

The other options do not align with this common belief. For instance, while some may argue that sales tax is unfair to the middle class, this perspective is less widely held compared to concerns about its impact on poorer individuals. The notion that it is the only fair tax contradicts the understanding of equity in taxation, which generally advocates for taxes that are progressive and considerate of ability to pay. Lastly, while there are arguments about the effects of sales taxes on various income groups, the common consensus