Which type of tax describes excise taxes, sales taxes, and tolls?(1 point)
Responses
progressive tax
progressive tax
use tax
use tax
regressive tax
regressive tax
flat tax
Whats the right answer
The correct answer is regressive tax. Excise taxes, sales taxes, and tolls are types of taxes that have a regressive structure, meaning that they place a higher burden on lower-income individuals compared to higher-income individuals.
The correct answer is regressive tax. Excise taxes, sales taxes, and tolls are all examples of regressive tax, as they tend to impose a higher burden on lower-income individuals compared to higher-income individuals.
The correct answer is "regressive tax." To understand why, let's briefly explain each option:
1. Progressive tax: This type of tax is based on the principle that individuals with higher incomes should pay higher tax rates. It is a system where the tax rate increases as income level increases.
2. Use tax: Use tax is a tax that is imposed on the use, consumption, or enjoyment of goods or services. It is typically applied when sales tax was not paid at the time of purchase or when a business uses taxable items without paying sales tax.
3. Regressive tax: This refers to a tax system where the tax rate decreases as the taxpayer's income or ability to pay decreases. In other words, the tax burden falls more heavily on lower-income earners compared to higher-income earners. Common examples of regressive taxes include excise taxes, sales taxes, and tolls.
4. Flat tax: A flat tax is a system where all taxpayers, regardless of their income level, pay the same tax rate. This means that the tax rate remains constant regardless of income.
Therefore, the correct answer is "regressive tax" because excise taxes, sales taxes, and tolls generally have a greater impact on lower-income individuals compared to higher-income individuals.