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Which of the following is true about sales tax?

a. the national sales tax percentage rate is six percent.
b. it makes things more expensive for you to buy.
c. you don't have to pay the tax if your income is very low.
d. the federal government will deduct it from your paycheck.

1 Answer

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Final answer:

Sales tax makes items more expensive at the point of purchase as it is added to the price of goods and services. It is collected by retailers and varies by state, with no national fixed rate. Sales tax is not based on income and is not deducted from federal paychecks.

Step-by-step explanation:

Regarding the student's question on sales tax, option b is correct: Sales tax does make things more expensive for you to buy. Sales tax is an amount of money, calculated as a percentage of the purchase price of goods and services, collected by retailers at the point of sale and then passed on to the state government. Different states have varying sales tax rates and the specific items that are taxed can also vary by state. This means that the national sales tax percentage rate is not a fixed six per cent, as rates depend on state laws. Additionally, unlike certain benefits or tax incentives, there is generally no income threshold for exemption from paying sales tax on purchases, thus making options a and c incorrect. The federal government does not deduct sales tax from your paycheck; rather, income tax is what is typically deducted from paychecks, therefore making option d incorrect.

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