When a state levies a sales tax,the tax
A)is paid only by the state's residents.
B)occasionally excludes items that are deemed to be necessities.
C)is commonly levied on labor services.
D)applies to wholesale purchases but not retail purchases.

Question

Quizplus · Accepted Answer

Sales taxes may exclude some items, such as basic necessities like food and medicine, which are deemed essential for the public welfare.

Answer: C 
 Sales taxes are commonly levied on goods and services sold at retail, which could include labor services provided by businesses.

When a State Levies a Sales Tax,the Tax