Which of the following describes a type of tax that people pay on money they earn?

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

Answer: (C)

Verified step by step guidance

1. Understand the definition of each tax type: Sales tax is charged on purchases of goods and services; Excise tax is a tax on specific goods like gasoline or tobacco; Property tax is levied on property ownership.
2. Identify the tax that is directly related to money earned by individuals, which is the tax on income received from work or investments.
3. Recognize that Income tax is the tax imposed on individuals' earnings, such as wages, salaries, and other forms of income.
4. Compare the options and note that only Income tax fits the description of a tax on money earned.
5. Conclude that the correct answer is Income tax because it directly taxes the money people earn.