Question

An excise tax is a tax on:

• A. The income earned by individuals or corporations.
• B. The purchase of specific goods, such as tobacco or alcohol.
• C. The value of assets owned by an individual or business.
• D. The sale of goods and services in general, regardless of the specific item.

Answer 1

Answer:

B. The purchase of specific goods, such as tobacco or alcohol.

• Excise taxes are levied on specific products, often to discourage consumption or to generate a consistent source of revenue.