What is a consumption tax
A)a tax on goods but not services
B)a tax on the amount of income that people spend
C)a tax on services but not goods
D)a tax on the amount of income that people earn

Question

Quizplus · Accepted Answer

A consumption tax is a tax on the amount of income that people spend, rather than the amount that they earn. It is typically levied on goods and services that are consumed, as opposed to income, investments, or assets. Examples of consumption taxes include sales taxes, value-added taxes, and excise taxes.

What Is a Consumption Tax