Question

A person earns a salary of $60,000 at her job. However, she only ends up with about $48,000 to spend on expenses like groceries, rent, and a car. Which type of tax explains why this happened?

for a p e x​

Answer 1

Sales tax, is the correct answer acording to the answer sheet.

Answer 2

Sales tax

Step-by-step explanation:

Sales tax can explain the high price of the products presented in the question above. This is because the sales tax refers to the tax levied on any object, good or service sold to a person. This tax implies that the normal price of a product or service is increased in accordance with the tax for that product. It is the consumer who pays for this tax and the amount is passed on to the government.

In this case, we can consider that the reason why the person, shown in the question above, spends more than half of his salary on groceries, rent, and a car, is because of the sales taxes inserted in these products.