Ty and his wife paid a sales tax on the T-shirts they bought. That money probably helps fund the public park they visited. Similarly, they will pay money to the government in the form of property taxes, and some of that money will fund the local schools.
What sales tax means?
A sales tax is a charge that is added to both the price of goods and services sold to businesses and the price of the same goods and services purchased by consumers. Because it is a type of consumption tax, consumers are charged for their purchases.
What is property tax?
Property tax is a charge made on real estate that is owned by a person, a business, or another type of legal body. Property tax is most frequently a real estate ad-valorem tax, which is regarded as a regressive tax. It is computed by the local government in the area where the property is situated, and the owner is responsible for paying it.
Learn more about property tax: brainly.com/question/15227817
#SPJ4
The correct question is:
As you read the following paragraph, think about the purpose and idea behind the taxes discussed. Then answer the question that follows.
Ty just received a job offer in a new city. He is married with two small children. He and his wife go to visit the city and find a place to live. Their children will be in school in a few years. While on the trip, they visit a beautiful public park for the kids. They encounter one type of tax when they buy a few souvenir T-shirts: the shirts are on sale for $10, but Ty ends up paying $11.00 after the sales tax is added. Later, they encounter a second type of tax. When Ty and his wife meet with their real estate agent, the agent tells them that the property taxes they will pay on their new home are higher than the taxes on their old home. However, the agent says the government funds the schools in the area well, and the schools are high quality.
What are the costs and benefits of the taxes that Ty and his wife experienced on this trip?
