Question

The tax base is Select one:

a. a tax on immoral or undesireable activities, such as drinking, gambling, or smoking.
b. the change in the amclint paid in taxes divided by the change in a person's income.
c. a way of showing the relationship between the money a tax will raise for the government and the dollar amount (or percent) of the good's price that is collected on each individual unit of the taxed good or activity.
d. the amount (quantity) of good or activity that is being taxed.
e. the amount paid in taxes divided by a person's income.
f. the total amount of money that the government will collect from the tax on a good.
g. the amount of money or percentage of the good's price that is collected on each individual unit of the taxed good or activity.

Answer 1

The tax base is d. the amount (quantity) of the good or activity that is being taxed.

Step-by-step explanation:

The tax base refers to the actual quantity or amount of a good or activity that is subject to taxation. It forms the foundation upon which the tax rate is applied, determining the total tax liability.

For instance, in the case of a sales tax on a particular product, the tax base would be the number of units sold or the total value of those goods. Understanding the tax base is crucial as it directly influences the revenue generated by a tax and helps in assessing the impact of taxation on different goods or activities.

It serves as the starting point for calculating the tax owed, providing a clear measure for determining the tax burden on individuals or entities engaging in the taxed activity or possessing the taxed goods. By defining what is being taxed, policymakers can design and implement effective tax policies.

Answer 2

The tax base refers to the amount of goods or activities being taxed, which serves as the assessed value subject to taxation and is pivotal for government revenue.

Step-by-step explanation:

The tax base is d. the amount (quantity) of good or activity that is being taxed. This term refers to the assessed value of a set of assets, income streams, or investments that are subject to taxation. Taxes themselves serve as the primary source of revenue for governments, allowing them to fund various services and infrastructures that benefit society. Governments collect taxes in various forms, such as sales taxes, income taxes, and property taxes, each with their own distinct tax bases. The tax base can fluctuate depending on economic activity, seeing increases during times of economic growth and decreases during recessions.