A tax that is effectively a sales tax at each stage of production is defined as a/an ________ tax.
A) flat
B) equitable
C) value-added tax
D) none of the above

Question

Quizplus · Accepted Answer

A tax that is effectively a sales tax at each stage of production is defined as a value-added tax (VAT). This is because the tax is added to the value of the goods or services at each stage of production and is eventually passed on to the final consumer. Flat and equitable taxes do not necessarily apply to this description.

A Tax That Is Effectively a Sales Tax at Each