The Second Largest Source of Tax Revenue for the Federal

question 146

Multiple Choice

The second largest source of tax revenue for the federal government is

• A)payroll taxes
• B)the personal income tax
• C)the corporate income tax
• D)excise taxes
• E)the sales tax

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as gasoline, tobacco, and alcohol for revenue or to discourage consumption.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good supplied by producers.

Tax Subsidy

A government benefit that effectively reduces the tax that a business or individual owes.

Excise Tax

A tax imposed on specific goods, services, or transactions, typically including alcohol, tobacco, and fuel, aimed at raising government revenue or affecting consumption patterns.