Regressive fiscal policy burdens low-income groups more

Steps:

• Define regressive policy: Taxes or changes that take higher income proportion from the poor than the rich.
• Analyze A: Lowers tax threshold, forcing low earners to pay income tax sooner; cuts corp tax, benefiting wealthy shareholders.
• Analyze B, C, D: Check if they favor high earners or aid the poor.
• Select most regressive: Option disproportionately hits low incomes.

Why A is correct:

• Lowers personal allowance, making income tax more regressive by taxing low earners' income at basic rate; corp tax cut shifts burden to workers per incidence theory.

Why the others are wrong:

• B: Higher progressive tax on rich reduces inequality.
• C: Subsidizes healthcare and boosts benefits for low-income/unemployed, progressive.
• D: Raises income tax (progressive) and cuts GST (less regressive overall).

Final answer: A