What Is the Major Difference Between a Sales Tax and an Excise

question 36

Multiple Choice

What is the major difference between a sales tax and an excise tax?

• A) Sales taxes are levied by state governments, while excise taxes are levied only by the federal government.
• B) Sales taxes are imposed on the purchase of a wide variety of items, while excise taxes are imposed on the purchase of a few specific items.
• C) Sales taxes must be collected by the seller, while excise taxes must be paid directly by the purchaser.
• D) Sales taxes are imposed on the purchase of tangible goods, while excise taxes are imposed on the purchase of services.

---

Definitions:

Employer

An employer is an individual or organization that hires and pays for the services of workers to perform specific jobs.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Economic Disruption

An event or condition that causes significant changes in the performance of the economy, affecting production, consumption, and distribution.

Mediator

An impartial individual or party that intervenes in a dispute or negotiation to help the conflicting parties reach an agreement.