Which of the Following Is an Example of an Excise

question 81

Multiple Choice

Which of the following is an example of an excise tax?

• A)a tax on the wages that a firm pays its workers
• B)a tax on tobacco
• C)a tax on corporate profits
• D)the portion of federal income taxes earmarked to pay for Social Security and Medicare

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Definitions:

Benefits-Received Principle

A taxation theory stating that individuals should pay taxes in proportion to the benefits they receive from government services.

Gasoline Tax

A levy imposed by governments on the sale of gasoline, often used to fund transportation infrastructure and environmental initiatives.

Corporate Income Tax

A tax on the profit of a corporation, where the tax rates can vary based on a country's tax laws and the company's income levels.

Regressive Tax

A tax levied in a way where the rate of taxation diminishes as the taxable amount gets larger.