Question

The tax base for a __________ ___________ is the retail price of goods and some services, and retailers are responsible for collecting and remitting the tax; typically, sales tax is collected at the point of sale.

A) Income Tax
B) Excise Tax
C) Property Tax
D) Sales Tax

Answer 1

The tax being referred to, which is applied to the retail price of goods and some services and is collected at the point of sale by retailers, is Sales Tax (option D). Sales tax is used by governments as a source of revenue to fund public services.

Step-by-step explanation:

The tax base for a sales tax is the retail price of goods and some services, and retailers are responsible for collecting and remitting the tax; typically, sales tax is collected at the point of sale. The correct answer is D) Sales Tax.

Sales taxes are imposed on the total amount of sales of certain goods and services at retail prices. This means whenever a consumer purchases an item or service that falls within the taxable category, the seller has to charge the sales tax on top of the retail price. This amount is then collected and remitted to the appropriate governmental authority, which utilizes this tax as a source of revenue to pay for public services.

It's important to note that a few essential items, like food and medicine, may be excluded from this tax. Unlike income tax, which is based on an individual's or corporation's earnings, or property tax, which is calculated on the value of owned real estate, sales tax specifically targets consumer spending.