Regressive taxes burden low-income earners disproportionately

Steps:

• Define regressive tax: imposes higher effective rate on low incomes relative to high incomes.
• Evaluate options: assess if changes target essentials (regressive) or wealth/luxuries (progressive).
• Compare impacts: low earners spend larger income shares on necessities like food/fuel.
• Identify worst: combination hitting basics without offsets.

Why D is correct:

• Removing income tax-free allowance taxes low earners' full income (regressive per ability-to-pay principle); VAT on all food burdens poor, who allocate 20-30% of income to food vs. 5-10% for rich.

Why the others are wrong:

• A: Wealth tax and luxury VAT target high incomes/assets, making it progressive.
• B: Value-based property tax is progressive, as wealthy own more valuable properties.
• C: Basic income tax cut benefits low earners; fuel duty is somewhat regressive but overall less so than D.

Final answer: D