A consumption tax is a tax on
A)goods but not on services.
B)the amount of income that people spend.
C)the amount of income that people earn.
D)the amount of income that people save.

Question

Quizplus · Accepted Answer

A consumption tax is levied on the amount of income that individuals spend, not on the income they earn or save. It applies to the purchase of goods and services, making it distinct from taxes that target earnings or savings directly.

A Consumption Tax Is a Tax on