Which of the Following Tends to Be the Most Criticized

question 34

Multiple Choice

Which of the following tends to be the most criticized tax because it increases on an almost annual basis?

• A) income tax
• B) sales tax
• C) property tax
• D) business tax
• E) excise tax

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Definitions:

Adjusted Basis

The original cost of a property plus improvements and minus depreciation or damages, used to calculate capital gains or losses.

Fair Market Value

The price at which a property would sell under normal conditions in an open and competitive market.

Recognized Gain

This is the portion of gain realized from the sale or exchange of an asset that is subject to taxation under the IRS code.

Sales Commission

A fee or percentage of a sale amount paid to salespeople, typically as an incentive for sales performance.