Greg Pays Sales Tax of $7

question 54

Multiple Choice

Greg pays sales tax of $7.20 on the purchase of a lamp for $120. Michelle paid sales tax of $9 on the purchase of a similar lamp for $150. Greg's taxable income for the current year is $40,000. Michelle's taxable income is $55,000.
I.The structure of the sales tax is progressive if based on taxable income.
II.The structure of the sales tax is proportional if based on sales price.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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