Which type of tax is based on the amount of money a person earns in a year and is collected by the federal government? A. Estate tax
B. Gasoline tax
C. Income tax
D. Sales tax
Which type of tax is based on the amount of money a person earns in a year and is collected by the federal government?
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The correct answer is C. Income tax.
Income tax is a type of tax that is based on the amount of money an individual earns within a year. It is collected by the federal government and is used to fund various public services and programs. The more a person earns, the higher the amount of income tax they generally owe.