What is one major similarity between property tax and sales tax?
A. Both are types of regressive taxes.
B. Both are types of tax assessment.
C. Both are based on taxable income.
D. Both are based on gross income.
Answer (2)
Both property tax and sales tax are regressive taxes, meaning they disproportionately take a larger share from lower-income earners compared to higher-income earners. Sales tax affects consumers equally regardless of income, while property tax is based on property value. Thus, the most appropriate answer choice is A: Both are types of regressive taxes.
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Property tax and sales tax are both forms of regressive taxes, meaning they can disproportionately impact those with lower incomes. Sales tax applies to purchases regardless of income levels, while property tax is based on property value, which can also affect lower-income individuals more heavily. Understanding this similarity helps clarify how different taxes influence taxpayers based on their financial status. ;
