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
Question & Answer
Which type of tax is based on the amount of money a person earns in a year and is collected by the federal government?
1 Answer
Verified archiveThe 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.