5 - taxes are the same regardless of the amount of sales...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
What type of tax is a sales tax? Explain your answer. Answer: The sales tax is a proportional tax. A proportional tax is a tax where the tax rate remains at the same rate regardless of the tax base. Most county or state sales
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: taxes are the same regardless of the amount of sales upon which the tax is levied. With a proportional tax, the marginal tax rate and average tax rate are always the same....
View Full Document

This note was uploaded on 09/16/2011 for the course ACCOUNTING 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.

Ask a homework question - tutors are online