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On April 15, many people write a check to the US government to pay their income taxes. This payment is a form of __________ tax. Purchasing a new pair of shoes and paying the store an additional 10% in sales tax, which the store will then pay to the government, is a form of __________ tax.

a. income; sales
b. property; income
c. sales; property
d. excise; value-added

1 Answer

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Final answer:

The correct answer is that the payment to the US government on April 15 is a form of income tax, and the additional 10% paid when buying shoes is a form of sales tax; hence the answer is 'a. income; sales'.

Step-by-step explanation:

On April 15, many people write a check to the US government to pay their income taxes. This payment is a form of income tax. In contrast, when you purchase a new pair of shoes and pay the store an additional 10% in sales tax, which the store will then pay to the government, you are contributing to a sales tax. Therefore, the correct answer to the student's question is: a. income; sales.

The income tax is a mandatory contribution to state revenue, levied by the government on workers' income and business profits. The sales tax, on the other hand, is a tax paid to a governing body for the sales of certain goods and services and is generally collected at the point of sale by the retailer.

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