Regressive taxes burden lower-income groups disproportionately

Steps:

• Define regressive as a tax or policy where the effective rate rises as income falls, often via fixed amounts.
• Evaluate each option: taxes on profits or benefits are typically progressive; fixed excises like on cigarettes hit low earners harder.
• Compare impacts: low-income households spend higher income shares on taxed goods like cigarettes.
• Select the option matching regressive traits: specific cigarette tax.

Why C is correct:

• A specific tax imposes a fixed amount per unit, taking a larger income percentage from low earners who smoke proportionally more, per regressive tax definition.

Why the others are wrong:

• A: Corporate profit taxes are progressive, taxing higher profits at effective higher rates on wealthy owners.
• B: State pension benefits are progressive, providing greater relative support to low-income retirees.
• D: Unemployment benefits are progressive, acting as income replacement mainly for lower-wage workers.

Final answer: C