121061
AssignmentMultiple Choice

Paying Taxes

Question 121061 • * HSA 26-27 Economics

What is the best definition of "income tax”?

Answer
A
a tax on the purchase price of goods
B
a tax on the value of property
C
a tax on money earned
D
a tax set aside each month for health care

Explanation

Income tax is a tax charged on money a person earns, such as wages or salary. A tax on the purchase price of goods is a sales tax, while a tax on property value is a property tax. Therefore, the best definition is “a tax on money earned.”

AI-written and checked against the verified answer.

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