A person has gotten a new job with a much higher salary. He plans to spend his extra money on a new car and a great stereo system for his apartment.Which statement best describes the tax situation this person will likely face in the next year?A.He will pay more in both income tax and sales tax.B.He will pay more in both property tax and income tax.C.He will pay more in sales tax but less in income tax.D.He will pay more in income tax but less in property tax.
Question
A person has gotten a new job with a much higher salary. He plans to spend his extra money on a new car and a great stereo system for his apartment.Which statement best describes the tax situation this person will likely face in the next year?A.He will pay more in both income tax and sales tax.B.He will pay more in both property tax and income tax.C.He will pay more in sales tax but less in income tax.D.He will pay more in income tax but less in property tax.
Solution
The statement that best describes the tax situation this person will likely face in the next year is A. He will pay more in both income tax and sales tax. This is because his higher salary will likely put him in a higher income tax bracket, meaning he will pay more income tax. Additionally, the purchase of a new car and a great stereo system will likely result in him paying more sales tax, as these are typically taxable purchases.
Similar Questions
A person has gotten a new job with a much higher salary. Even though he'll be making more money, he wants to start saving at a much higher rate. As a result, he plans to spend even less money this year than he did last year.Which statement best describes the tax situation this person will likely face in the next year?A.He will pay more in both income tax and sales tax.B.He will pay more in sales tax but less in income tax.C.He will pay more in income tax but less in sales tax.D.He will pay more in both property tax and income tax.
The following is a headline from the newspaper."Car drivers to pay higher taxes"What will result from an increased tax on cars?1 pointA increased employment in the car industryB increased petrol (gas) salesC reduced external costs of car useD reduced number of bus journeysClear selection
In which situation would a person pay a higher property tax than he or she did the year before?A.The number of dependents the person had increased.B.The value of the person's home increased.C.The salary the person earned increased.D.The amount the person spent on electronics increased.
An increase in taxes will ________ consumption spending and a decrease in transfer payments will ________ consumption spending. a. increase; decrease b. decrease; increase c. decrease; decrease d. increase; increase
Person A earns $100,000 per year, while person B earns $45,000 per year. Both people own homes in the same city. Which conclusion is most likely true for these people when they pay their property taxes?A.Neither person A nor person B will have to pay property tax.B.The property tax rate will be the same for person A and person B.C.Person A will pay at a higher property tax rate than person B.D.Person B will pay at a higher property tax rate than person A
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.