Asked by Amanda Palazzo on Jun 25, 2024
Verified
One difference between sales and excise taxes is that
A) sales taxes are only applied at the state level, while excise taxes are only applied at the federal level.
B) excise taxes apply to a wide range of products, while sales taxes apply only to a select list of products.
C) sales taxes are calculated as a percentage of the price paid, while excise taxes are levied on a per-unit basis.
D) excise taxes are calculated as a percentage of the price paid, while sales taxes are levied on a per-unit basis.
Sales Tax
A tax imposed by a government on the sale of goods and services, usually calculated as a percentage of the sales price.
Excise Tax
A tax imposed on specific goods, services, or transactions, often included in the price of the product, like fuel, tobacco, and alcohol.
Per-Unit Basis
A method of expressing or measuring something in terms of a single unit or a fixed amount per unit.
- Identify the distinctions among distinct tax forms such as income, sales, and excise taxes.
Verified Answer
HG
Harman GarchaJul 01, 2024
Final Answer :
C
Explanation :
Sales taxes are generally calculated as a percentage of the sale price of goods and services, while excise taxes are typically levied on a per-unit basis, such as per gallon of gasoline or per pack of cigarettes, regardless of price.
Learning Objectives
- Identify the distinctions among distinct tax forms such as income, sales, and excise taxes.