Which of the Following Is an Example of Value-Added Taxation

question 41

Multiple Choice

Which of the following is an example of value-added taxation?

• A)An employee notices that 8% of his latest paycheck has been taxed by the state government.
• B)A homeowner mails a check to the local government equal to 1% of her home's appraised value.
• C)The accountant for a coal mining company determines that 20% of the value of the coal mined in a certain area will be taxed.
• D)A gravel-crushing company is taxed when it sells gravel to a cement company; the cement company is taxed when it sells the concrete to a contractor; and the contractor is taxed when he sells a finished concrete driveway to a homeowner.
• E)None of the above