Answer Expert Verified. EXPLANATION: The Sales Tax is a tax which is imposed by the government on the sale of products and services. This tax is both Indirect and Regressive in nature .
Which terms best describe sales tax check all?
Answer Expert Verified. EXPLANATION: The Sales Tax is a tax which is imposed by the government on the sale of products and services. This tax is both Indirect and Regressive in nature .
What type of tax is a sales tax like?
Regressive taxes include property taxes, sales taxes on goods, and excise taxes on consumables, such as gasoline or airfare. Excise taxes are fixed and they’re included in the price of the product or service.
What type of tax is a sales tax quizlet?
Proportional tax – “flat tax” ,where everyone pays the same percentage; Sales tax is an example.
What is a tax on sales called?
A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax .
What describes a regressive tax?
A regressive tax is a type of tax that is assessed regardless of income , in which low- and high-income earners pay the same dollar amount. This kind of tax is a bigger burden on low-income earners than high-income earners, for whom the same dollar amount equates to a much larger percentage of total income earned.
How is an excise tax different from a sales tax?
Excise taxes are sales taxes that apply to particular products. ... Unlike general sales taxes, excise taxes are usually applied on a per-unit basis instead of as a percentage of the purchase price. For instance, cigarette excise taxes are calculated in cents per pack.
What are the 7 types of taxes?
- Income taxes. Income taxes can be charged at the federal, state and local levels. ...
- Sales taxes. Sales taxes are taxes on goods and services purchased. ...
- Excise taxes. ...
- Payroll taxes. ...
- Property taxes. ...
- Estate taxes. ...
- Gift taxes.
How do I figure out sales tax?
Explanation: To find the amount of sales tax, take the difference in the total before and after tax and divide by the price before tax . This gives 0.08 or 8%.
Is sales tax better than income tax?
A revenue-neutral national retail sales tax would be more regressive than the income tax it replaces . A national retail sales tax would create a wedge between the prices consumers pay and the amount sellers receive. Theory and evidence suggest that the tax would be passed along to consumers via higher prices.
Which of the following best describes the difference between sales tax and property tax?
Which of the following statements best describes the difference between sales tax and property tax? Sales tax is applied to items as they are purchased while property tax is applied to items already owned . ... Oscar has elected to have 23% of his federal income tax withheld as state income tax.
How is sales tax different from income tax quizlet?
Income taxes, both corporate and individual are taxes on income (Federal, State or City) Sales tax is a tax on the sale of goods and services (State and local).
What are examples of regressive taxes?
Regressive tax, tax that imposes a smaller burden (relative to resources) on those who are wealthier. ... Consequently, the chief examples of specific regressive taxes are those on goods whose consumption society wishes to discourage, such as tobacco, gasoline, and alcohol . These are often called “sin taxes.”
What is the difference between sales tax and consumer use tax?
Overview. California’s sales tax generally applies to the sale of merchandise, including vehicles, in the state. California’s use tax applies to the use, storage, or other consumption of those same kinds of items in the state.
What items are exempt from sales tax?
- Sales of certain food products for human consumption (many groceries)
- Sales to the U.S. Government.
- Sales of prescription medicine and certain medical devices.
- Sales of items paid for with food stamps.
Is value added tax the same as sales tax?
A value-added tax (VAT) is a flat tax levied on an item. It is similar in some respects to a sales tax , except that with a sales tax, the full amount owed to the government is paid by the consumer at the point of sale. With a VAT, portions of the tax amount are paid by different parties to a transaction.
