The Three Major Taxes Governments Use to Generate Revenue Are

question 98

Multiple Choice

The three major taxes governments use to generate revenue are:

• A) VAT, income tax, and withholding tax.
• B) sales tax, VAT, and income tax.
• C) property tax, VAT, and sales tax.
• D) income tax, property tax, and sales tax.

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Definitions:

Tax Bracket

Categories that determine the rate at which income is taxed, based on the amount of taxable income.

Capital Cost Allowance (CCA)

A tax deduction in Canada for depreciable property expense, used to decrease taxable income.

Salvage Value

The anticipated market value of an asset once it reaches the end of its operational lifespan.