Consumption Taxes
A consumption tax is a tax levied on sales of goods or services.
The most important kinds of consumption taxes are general sales taxes, excise taxes, value-added taxes, and tariffs.
General
A general sales tax imposes the same tax rate on a wide variety of goods and, in some cases, services. In the United States, most states and many local governments have a general sales tax.
Most states exempt certain necessities from sales tax, such as basic groceries and prescription drugs.
Both individuals and businesses pay sales tax.