A sales tax is an example of
A) A specific tax
B) An ad valorem tax
C) A lump sum tax
D) An income tax

Question

Quizplus · Accepted Answer

A sales tax is an example of an ad valorem tax, which is calculated as a percentage of the price of goods or services sold. It is not a specific tax, which is a fixed amount per unit, a lump sum tax, which is a fixed amount regardless of the amount of goods or services, or an income tax, which is based on an individual's earnings.

A Sales Tax Is an Example of