Final answer:
When buying clothes or groceries, you will pay sales tax. Sales tax is charged on retail transactions as a percentage of the sale price, as opposed to excise, property, or income taxes.
Step-by-step explanation:
When you buy clothes or check out at the grocery store, you will pay C. Sales tax. A sales tax is a tax on business transactions, which is generally imposed as a percentage of firms' sales on retail items. Unlike property tax, which is imposed on assets, or income tax, which is imposed on an individual's wages or salary, sales tax is applied to the price of goods and services at the point of sale. This type of tax is considered regressive because people with lower incomes spend a higher proportion of their income on taxed goods. In contrast, an excise tax is a tax placed on a specific good, sometimes with the intent to discourage its consumption or because it's an item that the government knows people will continue to buy regardless of the tax. Examples of goods subject to excise taxes include gasoline, cigarettes, and alcohol.