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Which of the Following Is an Example of Value-Added Taxation

Question 17

Multiple Choice

Which of the following is an example of value-added taxation?


A) An employee notices that 8% of his latest paycheck has been taxed by the state government.
B) A homeowner mails a check to the local government equal to 1% of her home's appraised value.
C) The accountant for a coal mining company determines that 20% of the value of the coal mined in a certain area will be taxed.
D) A gravel-crushing company is taxed when it sells gravel to a cement company; the cement company is taxed when it sells the concrete to a contractor; and the contractor is taxed when he sells a finished concrete driveway to a homeowner.
E) None of the above

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