Property tax, excise tax, and inheritance tax are all examples of ___________.

Property tax, excise tax, and inheritance tax are all examples of ___________.

• A. wealth tax
• B. income tax
• C. payroll tax
• D. sales tax

Answer: (A)

Property tax, excise tax, and inheritance tax are categorized as wealth taxes because they are levied based on the value of property or assets rather than on the income generated from labor or services. Wealth taxes typically focus on the accumulation of assets and their transfer, such as properties owned by individuals or families, the wealth they inherit, or certain types of transactions that involve taxable goods or services. In contrast, income taxes are based on earnings, payroll taxes are deducted from wages to fund social security and Medicare, and sales taxes are collected on the purchase of goods and services. Hence, the correct classification of property tax, excise tax, and inheritance tax falls under the umbrella of wealth tax.

Property tax, excise tax, and inheritance tax are categorized as wealth taxes because they are levied based on the value of property or assets rather than on the income generated from labor or services.

Wealth taxes typically focus on the accumulation of assets and their transfer, such as properties owned by individuals or families, the wealth they inherit, or certain types of transactions that involve taxable goods or services. In contrast, income taxes are based on earnings, payroll taxes are deducted from wages to fund social security and Medicare, and sales taxes are collected on the purchase of goods and services. Hence, the correct classification of property tax, excise tax, and inheritance tax falls under the umbrella of wealth tax.