What are the differences between a sales tax and a use tax?(1 point)

Question

Responses

A sales tax is collected when a good or service is purchased by a consumer while a use tax is collected when a good or service is purchased by a businesses.
A sales tax is collected when a good or service is purchased by a consumer while a use tax is collected when a good or service is purchased by a businesses.

A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.
A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.

A sales tax on goods and services is paid by a region's residents and a use tax is paid by non-residents, both at the point of sale.
A sales tax on goods and services is paid by a region's residents and a use tax is paid by non-residents, both at the point of sale.

A sales tax is levied on the purchases of goods while a use tax is levied on the purchases of sevices.

Answer 1

The correct response that outlines the differences between a sales tax and a use tax is:

A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.

This statement accurately describes that sales tax is collected at the time of purchase, while use tax is applied to items bought without sales tax, typically when purchased from out-of-state vendors or for items brought into a state where sales tax was not collected.

Answer 2

Identify all the groups that pay property tax.(1 point)
Responses

landowners and homeowners
landowners and homeowners

businesses and individuals
businesses and individuals

landowners, homeowners, and businesses
landowners, homeowners, and businesses

employers and employees
employers and employees

Answer 3

The correct response that identifies all the groups that pay property tax is:

landowners, homeowners, and businesses

This response encompasses all parties who typically pay property tax, as both residential property owners and businesses that own property are liable for these taxes.

Answer 4

Which type of tax describes excise taxes, sales taxes, and tolls?(1 point)
Responses

flat tax
flat tax

use tax
use tax

regressive tax
regressive tax

progressive tax

Answer 5

The correct response that describes excise taxes, sales taxes, and tolls is:

regressive tax

Regressive taxes are those that take a larger percentage of income from lower-income earners than from higher-income earners. Since excise taxes, sales taxes, and tolls are typically fixed costs that do not vary with income, they disproportionately affect those with lower incomes.

Answer 6

Compare how Medicare taxes are paid by individuals who are employees to those who are self-employed.(1 point)
Responses

Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay half (1.45%) of the Medicare tax.
Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay half (1.45%) of the Medicare tax.

Employees do not pay the Medicare tax and the employer pays for both halves of the tax (2.9%). Self-employed individuals pay for both halves of the tax (2.9%).
Employees do not pay the Medicare tax and the employer pays for both halves of the tax (2.9%). Self-employed individuals pay for both halves of the tax (2.9%).

Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay for both halves of the tax (2.9%).
Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay for both halves of the tax (2.9%).

Employees pay for both halves of the tax (2.9%) and the employer does not pay the Medicare tax. Self-employed individuals do not pay Medicare tax.

Answer 7

The correct response that compares how Medicare taxes are paid by individuals who are employees to those who are self-employed is:

Employees pay half (1.45%) of the Medicare tax while the employer pays the other half. Self-employed individuals pay for both halves of the tax (2.9%).

This is accurate, as employees contribute 1.45% of their wages to Medicare, and employers match that with another 1.45%. Self-employed individuals pay the full 2.9% themselves, which includes both the employee and employer portions.