Sales tax

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/sales-tax

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the economic incidence?Often considered regressive, disproportionately affecting lower-income households, though exemptions can mitigate this
2. What is sales tax and why do we pay it when buying toys?Sales tax is a small extra amount added to the price of many items when you buy them. It helps pay for things like schools, roads, and fire trucks.
3. Why did states start using sales tax in the 1930s?In the 1930s, states needed more money because other taxes were not enough. They added sales tax to get more money from people buying things.

Regressive Tax: A tax where the tax rate decreases as the taxable amount increases, disproportionately burdening lower incomes.
Tax Base: The total amount of income, assets, or economic activity that a tax applies to.
Elasticity of Revenue: The responsiveness of tax revenue to changes in economic activity or income.