Which type of tax is typically applied to most goods and services purchased by consumers?

• A. Corporate tax
• B. Income tax
• C. Property tax
• D. Sales tax

Answer: (D)

Verified step by step guidance

1. Understand the different types of taxes listed: Corporate tax is levied on company profits, Income tax is charged on individual earnings, Property tax is applied to ownership of property, and Sales tax is imposed on goods and services purchased by consumers.
2. Identify the tax that directly affects consumer purchases. Since the question asks about taxes applied to goods and services bought by consumers, focus on taxes that are transaction-based rather than income or property-based.
3. Recall that Sales tax is a consumption tax added at the point of sale on most goods and services, making it the tax typically applied to consumer purchases.
4. Eliminate other options: Corporate tax affects businesses, Income tax affects earnings, and Property tax affects property owners, none of which are directly charged on consumer purchases.
5. Conclude that the tax type typically applied to most goods and services purchased by consumers is Sales tax.