A greater burden of the taxes on essential goods is borne by the
Answer Details
A greater burden of the taxes on essential goods is borne by the lower income group.
When taxes are imposed on essential goods such as food, clothing, and other basic necessities, it affects everyone who buys these goods. However, the impact of these taxes is greater on the lower income group because they spend a larger proportion of their income on these essential goods.
For example, if a tax is imposed on a basic food item like bread, it will increase the price of bread for everyone. However, a person in the higher income group may be able to afford the increased price without changing their consumption behavior significantly. In contrast, a person in the lower income group, who has a smaller disposable income, may have to reduce their consumption of bread or switch to cheaper, lower-quality alternatives.
Therefore, a greater burden of the taxes on essential goods is borne by the lower income group. The higher income group can afford to absorb the increased prices of these goods without significantly affecting their consumption behavior, while the lower income group has to adjust their consumption patterns and may even face difficulties in meeting their basic needs.