Tax collected based on a taxpayer's spending is known as:
A)excise tax.
B)consumption tax.
C)gift tax.
D)income tax.

Question

Tax collected based on a taxpayer's spending is known as:
A)​excise tax.
B)​consumption tax.
C)​gift tax.
D)​income tax.

Quizplus · Accepted Answer

Consumption tax is a tax that is levied on goods and services that are consumed by the taxpayer. Unlike income tax, which is based on the taxpayer's income, consumption tax is based on the taxpayer's spending. Examples of consumption tax include sales tax, value-added tax (VAT), and goods and services tax (GST).

Tax Collected Based on a Taxpayer's Spending Is Known As