What is an example of a tax?
Example of a Tax
An example of a tax is the sales tax, which is levied on the sale of goods and services. When consumers purchase items, a percentage of the purchase price is added as tax and paid to the government. This revenue helps fund public services such as education, healthcare, and infrastructure.
Another common example is income tax, which individuals and businesses pay on their earnings. Income tax is typically progressive, meaning the rate increases with higher income levels. Governments use income tax revenue to finance various public programs and government operations.
Other examples include property taxes, which are based on the value of real estate, and excise taxes, which are applied to specific goods like alcohol, tobacco, and gasoline.