Final answer:
False. When you pay taxes on a purchase, the seller does not get to keep that money. Taxes are collected by the government to fund public services.
Step-by-step explanation:
False.
When you pay taxes on a purchase, the seller does not get to keep that money. Taxes are collected by the government to fund public services such as schools, libraries, roads, and police and fire protection. The amount of taxes paid by consumers is determined by the sales tax rate set by the government.
For example, if a sales tax rate is 7%, and you purchase an item for $100, you would pay $7 in taxes. This $7 then goes to the government, not the seller.