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:

Long Sentences

Written or spoken expressions that are extended in length, potentially making them harder to read or understand.

Complex Ideas

Concepts or thoughts that involve multiple interconnected elements, requiring significant understanding or analysis.

Telepathic

Relating to the supposed ability to communicate thoughts directly from one mind to another without speaking or writing.

Communication Method

The means or system used to convey messages or information between individuals or groups, including verbal, nonverbal, and written forms.