Question

A sales tax is a tax imposed

A) when goods are purchased.
B) on the income of buyers.
C) on the income of sellers.
D) on those who save too much.
E) when stores have sales.

Answer 1

A sales tax is a tax imposed on business transactions, especially the sale of goods and services. It is calculated as a percentage of the purchase price and collected by the seller at the time of sale. Sales taxes vary among jurisdictions and may exempt certain goods or services from taxation.

Step-by-step explanation:

A sales tax is a tax imposed on business transactions, especially the sale of goods and services. It is a tax assessed on an item bought in a store, calculated as a percentage of the purchase price. Sales taxes are collected by the seller at the time of sale.

For example, if the sales tax rate is 10% and you buy an item that costs $100, you would need to pay an additional $10 in sales tax, bringing the total cost of the item to $110.

It is important to note that sales taxes vary among jurisdictions and may exempt certain goods or services from taxation.