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:

Red Meat

Red meat refers to the meat of mammals, which is typically darker in color than poultry due to higher levels of myoglobin, often including beef, pork, and lamb.

BioFuel Energy

Energy produced from organic materials or biomass, offering a sustainable alternative to fossil fuels.

Ethanol Producer

A company or facility that manufactures ethanol, a type of biofuel, often from agricultural products like corn or sugarcane.

Utility

In economics, a measure of satisfaction or happiness that individuals get from consuming goods and services.