Taxes Paid on the Purchase of Specific Items Such as Gasoline

question 67

Multiple Choice

Taxes paid on the purchase of specific items such as gasoline, cigarettes, or alcoholic beverages would fall into the category of:

• A) personal income tax.
• B) excise tax.
• C) property tax.
• D) sales tax.

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Definitions:

Unlimited Life

Refers to entities, typically corporations, that are structured to continue operations indefinitely unless dissolved.

Ease of Formation

The simplicity and straightforwardness associated with establishing a new enterprise or legal entity, typically influenced by the regulatory and legal environment.

Single Tax

A system in which only one type of tax is levied, often proposed to simplify tax systems.