Question

What does a government's tax base refer to?

• A. The total amount of taxes collected by the government.
• B. The total value of income, consumption, or wealth subject to taxation.
• C. The set of tax loopholes available to corporations.
• D. The percentage of citizens who pay taxes annually.

Answer 1

Answer:

B. The total value of income, consumption, or wealth subject to taxation.

• The tax base is the total value of the assets, income, or other economic activity on which a tax is levied.