which type of tax describes excise taxes, sales taxes, and tolls?
1) regressive tax
2) use tax
3) progressive tax
4)flat tax
I think #1
To determine which type of tax describes excise taxes, sales taxes, and tolls, we need to understand the characteristics of each option.
1) Regressive tax: A regressive tax is a tax that takes a higher percentage of income from low-income earners than from high-income earners. This means that as income increases, the tax burden decreases proportionately. This is not related to the types of taxes mentioned.
2) Use tax: Use tax is a tax imposed on the use, consumption, or storage of certain goods or services that were not subject to sales tax at the time of purchase. This does not encompass all of the mentioned taxes.
3) Progressive tax: A progressive tax is a tax that takes a higher percentage of income from high-income earners than from low-income earners. This means that as income increases, the tax burden also increases proportionately. This is not the correct option either.
4) Flat tax: A flat tax is a tax system where a fixed percentage of income is paid in taxes, regardless of the income level. This option does not accurately describe excise taxes, sales taxes, and tolls because these taxes are not based on a fixed percentage of income.
Therefore, the correct answer is none of the mentioned options. Excise taxes, sales taxes, and tolls are typically categorized as "indirect taxes" or "consumption taxes," as they are levied on the purchase or use of specific goods and services.