Which of the Following Is True Regarding Use Taxes

question 104

Multiple Choice

Which of the following is true regarding use taxes?

• A)A use tax is relatively easy to enforce compared to a sales tax.
• B)Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.
• C)Use taxes encourage taxpayers to buy goods out of state to avoid paying sales tax in their home state.
• D)A use tax is generally a progressive tax.
• E)None of the choices are correct.

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Definitions:

Socialism

A political and economic theory advocating for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Economic Theories

The body of knowledge concerning the production, consumption, and transfer of wealth, formulated as models and principles that aim to explain economic behaviors and predict outcomes.

Power Distribution

The way in which authority, influence, and resources are allocated and exercised within an organization or society.

Geert Hofstede

A Dutch social psychologist known for his research on cross-cultural groups and organizations, especially for developing the cultural dimensions theory, which identifies how cultures differ across countries.