Because a sales tax on a car is fixed percentage of the price of the car regardless of how rich or poor he is?

Question

it is an example of?

a an excise tax
b a progressive tax
c a regressive tax
d an income tax

Answer 1

Technically, it could be considered a regressive tax within a socio-political context, because the wealthy pay the larger amount. This is constantly disputed in Congress.


How many poor people buy new Mercedes-Benzes?

How many wealthy people buy ten year old toyotas. Granted, some do, but they represent anomalies.


The excise tax is appropriate term for the gas guzzler tax applied to some vehicles.

A progressive tax would have a higher percentage of the sales price for a $100,000 car than a $10,000 car, for example, 15%tax on $100,000 cars, versus 2% tax on $10,000 cars, just as an example.

It is not an income tax.


If it must be categorized in either of the four categories, the better choice is a regressive tax, in that poorer people spend a greater percentage of their income on the sales tax of their car than a high earner or wealthy person.

Answer 2

It is none of the above it is a proportional tax.

A regressive tax is a tax imposed so that the tax rate decreases as the amount to which the rate is applied increases. The term "regressive tax" can be applied to any type of tax. It is frequently applied in reference to fixed taxes, where every person has to pay the same amount of money, such as a poll tax. The term regressive refers to the way the rate progresses from high to low. The opposite of a regressive tax is a progressive tax, where the tax rate increases as the amount to which the rate is applied increases. In between is a proportional tax, where the tax rate is fixed as the amount to which the rate is applied increases. Regressive taxes reduce the tax incidence of people with higher incomes, as they shift the incidence disproportionately to those with smaller incomes.

Answer 3

A sales tax is an excise tax. It is added on to the purchase price. There is no variation dependent on income.

Answer 4

Auto sales tax might be an excise tax...

But the way it is pro-rated it is a;

C.) a regressive tax

Because a poorer person will pay a higher percent of their wages, than a richer person will.

Answer 5

c.
An excise tax is a Federal or state tax imposed on the manufacture and distribution of certain non-essential consumer goods.
Sales tax is imposed on the distribution of non-essential consumer goods.
It is regressive as well.

Answer 6

A. excise can change amounts in different areas,