Purchases of goods and services

Reference no: EM13972721

Which of the following are based on an ability to pay? Explain.

a. State Y collects a sales tax of 5% on all purchases of goods and services.

b. State X collects a sales tax of 5% on all purchases of goods and services but gives low-income families a tax credit for sales taxes.

c. Students at State University are given free parking in designated lots. Faculty and staff members must pay $125 per year for parking at State University.

d. Barton City charges all customers a flat monthly rate of $10 for garbage pickup.

Reference no: EM13972721

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