Final answer:
The common types of taxes are Direct, Indirect Taxes. Direct taxes include income and property taxes, and Indirect taxes cover sales, use, and excise taxes. Income taxes are a major federal revenue source, varying by tax type as progressive, proportional, or regressive.
Step-by-step explanation:
The answer to the student's question, 'Some of the more common _______ and _______ _______ include income taxes, sales and use taxes, excise taxes, and property taxes' is Option A) Direct, Indirect Taxes. These terms represent types of taxes that are commonly applied in various jurisdictions.
Direct taxes are paid directly to the government by the individual or organization on whom it is imposed, such as income taxes and property taxes. Indirect taxes are collected by an intermediary, like a retailer, from the person who ultimately bears the economic burden of the tax, such as sales taxes and excise taxes. Income taxes are the main source of revenue for the federal government, while sales and use taxes, excise taxes, and property taxes are significant sources of revenue at the state and local levels.
Progressive taxes, such as the federal income tax, are based on the ability to pay, meaning that the tax rate increases as the taxpayer's income increases. Conversely, regressive taxes result in lower-income individuals paying a higher share of their income in taxes compared to higher-income individuals, as is the case with certain payroll taxes for Social Security.