Answer:
A
Explanation:
A tax is a complusory sum levied byb the government or an agency of the government on goods and services.
Taxes increases the price of goods and services
Types of taxes
1. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
A progressive tax ensures vertical equity.
The British system of taxation is an example of a progressive tax. This is because the more windows your house has, the wealthier the individual is. Individual with more windows, would pay a higher tax rate
2. Regressive tax system is a tax system where those that earn lower income pay more tax and those that earn higher income pay less tax.
A graduated income tax is also known as progressive tax
3. A proportionate tax taxes everyone the same regardless of the amount earned.
4. A sales tax is an example of consumption tax. It is levied on the sales of goods and services
