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.

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Definitions:

Pancreatic Duct

A conduit through which digestive enzymes from the pancreas are delivered to the small intestine.

Common Hepatic Duct

A duct formed by the convergence of the right and left hepatic ducts that transport bile from the liver to the gallbladder and duodenum.

Cystic Duct

A small duct that connects the gallbladder to the common bile duct, allowing bile to flow into and out of the gallbladder.

Pancreatic Duct

A duct connecting the pancreas to the common bile duct to supply pancreatic juices containing digestive enzymes to the small intestine.