Final answer:
The type of tax added at checkout for many goods is sales tax, which is a consumption tax collected by the retailer. Sales taxes fund state and local government services, although they can be regressive, taking a larger income percentage from low earners.
Step-by-step explanation:
The type of tax that is added at the checkout to the price of many of the goods Nancy purchases is called sales tax. Sales tax is a consumption tax imposed by the government on the sale of goods and services. A conventional sales tax is levied at the point of sale, collected by the retailer, and passed on to the government. It is a percentage of the retail price, and the rate can vary depending on the state or locality as well as the type of item purchased.
Some goods like food or medicine may be exempt from sales tax to reduce the tax burden on essential items. Since sales tax is regressive, it takes a larger percentage of income from low-income individuals than from high-income earners. Despite the potential regressive nature of sales taxes, they are an important source of revenue for state and local governments, funding services like schools, roads, and public safety.
It's important to note that not all items may be subject to sales tax, and some states might have different types of exemptions or lower tax rates for certain categories. In addition to sales tax, there are also excise taxes, which are taxes imposed on specific goods, such as tobacco or alcohol. These are often included in the price of the item, rather than added at checkout.
In summary, the sales tax Nancy sees at the superstore checkout is part of a broader taxation system that funds many public services and infrastructure projects. Consumers like Nancy pay these taxes as a part of their everyday purchases, contributing to the functionality and well-being of their communities.